Recently, the technology sector has been on a rapid upward climb. Since the second half of the year, two funds have witnessed their values double, while several other products have surged by more than 90%. Among individual stocks, leading optical module companies, including Accelink Technologies, Zhongji Innotlight, and Tianfu Communication, have showcased robust performance. This has significantly bolstered the growth of fund net asset values. In the meantime, stocks like Shenghong Technology, which has seen its value soar more than sixfold this year, and Envicool, which doubled in the latter half of the year, have also featured prominently on the top holdings lists of several high-performing funds.

However, as individual stocks have been doubling in value in batches, some fund managers have raised risk alerts for the optical module sector. Public fund professionals highlight that the price-to-earnings ratios of the top holdings in many of these funds that have doubled in value are already at record highs. Consequently, the risk of a short-term market correction cannot be overlooked. Moreover, with the industry undergoing accelerated rotation and frequent shifts in hot sectors, if the invested sectors enter a correction phase, the performance volatility of the products will become more pronounced.

Furthermore, it is essential to pay attention to issues related to scale expansion and liquidity. Some funds that have doubled in value, after experiencing rapid growth in size, now face increased challenges in asset allocation. Their room for adjusting their top holdings is limited, which may impact their future operational flexibility.