75 trillion yuan in deposits seeking solutions: "Fixed income+" becomes the new favorite, with individual investors becoming the main incremental force

21st Century Business Herald Special Correspondent Pang Huawei

“An average of 100 million yuan flows in daily.” At the beginning of 2026, a scene from a flagship product mentioned by a “Fixed Income+” fund manager is being mirrored across many fund companies.

Against the backdrop of deposit interest rates entering the “single-digit” range and the continuous decline in bank wealth management yields, a massive migration of residents’ deposits—totaling up to 75 trillion yuan—is unfolding. One of the core battlegrounds for this influx is the “Fixed Income+” product line under public mutual funds. This time, the new capital is shifting from institutions to ordinary individual investors.

The fund issuance market in 2026 is showing a different picture from previous years.

Wind data shows that as of March 9, 2026, 31 newly established “Fixed Income+” funds have a total issuance of 35.9 billion yuan. Among them, six products, including Southern YiXiang Stable Profit, E Fund Yue Heng Stable, Bank of China Zhaoxiang 6-Month Hold, and Southern Huiyi Stable Profit, have initial offerings exceeding 2 billion yuan. Notably, Southern YiXiang Stable Profit reached nearly 5 billion yuan. The new bond funds issued this year amount to about 40.7 billion yuan, with over 70% belonging to “Fixed Income+” funds.

This momentum did not start suddenly in 2026. CICC data shows that by the end of 2025, the scale of “Fixed Income+” products continued to rise, with a total of 2,292 funds and an asset size of 3 trillion yuan, up 9% month-on-month. Compared to the same period in 2024, the scale increased by 56%, surpassing the 2.7 trillion yuan peak in 2022, setting a new high.

The resurgence of “Fixed Income+” is no coincidence. Reviewing the past five years, “Fixed Income+” has experienced ups and downs. CITIC Securities divides it into three phases: the growth dividend period from 2020 to 2021, the market adjustment period from 2022 to 2024, and the recognition recovery period since 2025.

An industry insider told reporters that in the first three quarters of 2025, many equity funds faced redemption waves, but the total holdings of funds did not decrease—“most of the new capital went into buying ‘Fixed Income+’.” A sales staff member from a joint-stock bank revealed, “50% to 70% of monthly sales are ‘Fixed Income+.’”

In the fourth quarter of last year, bond funds also experienced a significant redemption wave. An industry analyst explained, “From the redemption structure at that time, pure bond funds were redeemed en masse, while mixed bond funds saw net subscriptions, reflecting investors’ pursuit of ‘Fixed Income+’ products—after risk appetite increased, there was a demand for higher yields.”

Since 2025, whether it’s the redemption wave of equity funds or the concentrated redemption of pure bond funds, “Fixed Income+” has not been impacted—instead, it has become a recipient of capital.

More noteworthy than scale growth is the change in capital structure.

“Unlike in the past, where institutional funds played the leading role, we clearly feel that ordinary individual investors are becoming the new main force in subscriptions,” said a public market department professional.

CICC’s fixed income team also pointed out this trend: entering 2026, retail funds—mainly from bank channels and internet platforms—may become an important source of incremental capital for “Fixed Income+” funds. Among these, “Line-Drawn Fixed Income+” funds, which emphasize a good holding experience, are expected to see a significant increase in market share.

Data from Gushang Fund researcher Jiang Rui shows that individual holdings of hybrid bond funds account for nearly 80%, making them the main force. Secondary and primary bond funds are still mainly held by institutions, but the proportion of individual investors is rapidly increasing.

“‘Fixed Income+’ funds’ individual investors have become the absolute main force in scale growth, accelerating the shift from institution-led to retail-led ownership structures,” Jiang Rui pointed out.

Zeng Fangfang from Paimai.com’s public fund product operations also said that since the beginning of 2026, continuous inflows from banks and internet channels suggest individual investors may replace institutions as the main purchasers.

She explained that looking ahead to 2026, institutional positions are already relatively high, and incremental demand may slow down. Meanwhile, low-risk preference funds such as bank wealth management and individual investors from banks and internet channels are entering the market more slowly, potentially becoming an important source of incremental growth for “Fixed Income+” funds.

The driving force behind this wealth migration is the large volume of low-interest deposits maturing simultaneously.

CICC estimates that in 2026, residents’ fixed-term deposits maturing will total about 75 trillion yuan, with approximately 67 trillion yuan of deposits of one year or longer maturing—an increase of 10 trillion yuan year-on-year, a 17% rise. Meanwhile, medium- and long-term fixed deposit rates have generally fallen below 1%. As residents face maturing deposits and declining interest rates, they are forced to seek alternatives. In this asset reallocation, “Fixed Income+” has become one of the core battlegrounds to absorb this flood of capital.

Behind the capital influx is the trust built by “Fixed Income+” products through performance.

Jiang Rui introduced that as of March 9, the average return of “Fixed Income+” funds was 1.28%, outperforming pure bond funds.

Wind data shows that as of March 9, four “Fixed Income+” funds had year-to-date returns exceeding 10%, including ICBC Add Benefits A, Golden Eagle Annual Postal Benefit One-Year Holding A, China Merchants An Ding Balanced One-Year Holding A, and Huashang Ruixin Fixed Term Open.

Looking at a three-year cycle, Wind data indicates that among 1,380 “Fixed Income+” funds with complete performance records, 1,341 achieved positive returns—over 97%. Among these, 55 funds gained over 30%, with Hua’an Zhiliang A reaching a return of 76.36%.

“‘Fixed Income+’ funds’ scale has continued to grow steadily this year,” Jiang Rui said. The reasons include, on one hand, low interest rates prompting residents to move their deposits, with “Fixed Income+” funds serving as a moderately volatile alternative asset for savings; on the other hand, corporate earnings in the A-share market are recovering, with sectors like technology and cyclicals providing space for yield enhancement, and the convertible bond market also becoming an important tool for “plus” returns, supporting performance.

It is worth noting that high-yield “Fixed Income+” products are mostly “sector-focused” high-volatility funds.

For example, Hua’an Zhiliang A, as of March 9, has an year-to-date return of 8.79% and a three-year return of 76.36%. The fund holds about 40% in stocks, mainly in tech stocks like optical modules and storage chips; Fuguo Jiu Li Stable A has a nearly 61.09% three-year return, with about 26% stock holdings at the end of last year, mainly in pharmaceuticals, technology, and resources.

CICC’s research shows that these “sector-focused” “race track” “Fixed Income+” funds, which bet on specific styles or sectors in stocks, saw more prominent growth in 2025, with significantly higher growth rates than “Fixed Income+” funds with balanced sector allocations.

From the full-year performance in 2025, benefiting from a rebound in the equity market, the relatively high-positioned “Fixed Income+” categories performed well: convertible bond funds had a median return of 22.4%; hybrid FOFs and hybrid funds yielded 6.1% and 5.5%, respectively; secondary bond funds returned 4.6%; primary bond funds around 2.0%.

On the risk side, the average maximum drawdown of “Fixed Income+” products in 2025 was about 2.1%, with the median drawdown of primary bond funds at only 0.9%; secondary bond funds about 1.9%; convertible bond funds approximately 8.8%.

As “Fixed Income+” products become more diverse, “Line-Drawn” low-volatility products are also favored by conservative investors.

What is “Line-Drawn”? It refers not to a performance champion in a specific year but to products with smooth net value curves, clear drawdown boundaries, and predictable holding experiences. They rarely top the gains charts but maintain their bottom line during market corrections, allowing holders to “hold steady and sleep well.”

Jiang Rui pointed out that the core goal of “Line-Drawn Fixed Income+” funds is to provide a good holding experience; the “sector-focused” funds aim for excess returns. Currently, most “Fixed Income+” clients have low risk tolerance, so “Line-Drawn” products are more popular. However, as investors gain a deeper understanding, those with some risk capacity and higher return pursuits may also choose “sector-focused” funds.

Zeng Fangfang from Paimai.com also said that, based on fund preferences, in 2025, a large influx of institutional funds seeking flexibility led to more prominent growth in “sector-focused” products with clear sector bets. By 2026, with about 75 trillion yuan of long-term resident deposits maturing, these funds entering the market may prefer “Line-Drawn Fixed Income+” funds.

Regarding investment allocation, Jiang Rui suggested that the explosive growth of “Fixed Income+” in 2025 was due to the resonance of capital demand and market environment. This logic will continue in 2026, but performance differentiation will become normal. Going forward, the core indicators to distinguish products will be bond stability, stock-picking ability, and drawdown control. Investors should choose products matching their risk preferences—low-volatility secondary bond funds for conservative investors, and flexible hybrid funds with convertible bonds for more aggressive ones, paying attention to holding strategies to reduce timing risks.

Zeng Fangfang recommended that, amid maturing deposits and low interest rates, the scale of “Fixed Income+” funds may continue to expand, with individual capital entering the market becoming an important incremental force. For investment strategies, a “core-satellite” approach is suggested: allocate most funds to low-volatility “Line-Drawn” products as the core for steady returns, while using a smaller portion for high-elasticity “sector-focused” products to seek excess returns. In terms of timing, use systematic investing and phased building to smooth volatility, avoid chasing high-flying sector products, and focus on long-term holding.