75 Trillion in Deposits Seek a Way Out: "Fixed Income+" Becomes the New Favorite, Individual Investors Become the Main Increment

“An average of 100 million yuan in funds flows in daily.” At the start of 2026, a scene showcasing the flagship products mentioned by a “Fixed Income+” fund manager is being played out simultaneously by many fund companies.

Against the backdrop of deposit interest rates entering the “1% range” and bank wealth management yields continuing to decline, a large-scale migration of residents’ deposits—totaling up to 75 trillion yuan—is unfolding. One of the core battlegrounds for this flood of funds is the “Fixed Income+” product line under public mutual funds. This time, the incremental capital is shifting from institutions to ordinary individual investors.

“Fixed Income+” Gains Favor

The fund issuance market in 2026 presents 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 scale of 35.9 billion yuan. Among them, six products—such as Southern YiXiang Stable Profit, E Fund YueHeng Stable, Bank of China Zhaoxiang 6-Month Holding, Southern HuiYi Stable Profit—have initial offerings exceeding 2 billion yuan, with Southern YiXiang Stable Profit reaching nearly 5 billion yuan. Additionally, about 40.7 billion yuan of new bond funds have been issued this year, 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 2022 peak of 2.7 trillion yuan, 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 this period 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 funds went into ‘Fixed Income+’.” A sales staff member from a joint-stock bank revealed, “50% to 70% of monthly sales are ‘Fixed Income+’ products.”

In Q4 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 hybrid 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 was the redemption wave of equity funds or the concentrated redemption of pure bond funds, “Fixed Income+” has not been affected—in fact, it has become a recipient of funds.

From Institutional to Retail Dominance

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

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

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 funds for “Fixed Income+” funds. Among these, “drawn line” style “Fixed Income+” funds that emphasize a good holding experience are expected to see a significant increase in market share.

Data from Jiashang Fund Researcher Jiang Rui shows that individual holdings of hybrid bond funds account for nearly 80%, making them the dominant force. Secondary bond funds 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.

Fangfang, an operator at Paimai.com’s public fund platform, also said that since the beginning of 2026, continuous inflows of personal funds from banks and internet channels are expected to enable individual investors to replace institutions as the main subscribers.

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 through banks and internet channels are entering the market with a lag, potentially becoming an important source of incremental growth for “Fixed Income+” funds in 2026.

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 with a term of one year or more 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’ deposits mature and rates decline, they are forced to seek alternatives. In this asset reallocation, “Fixed Income+” has become one of the core battlegrounds to absorb this flood of funds.

Who Attracts the Most Capital?

Behind the influx of funds is the trust built through the performance of “Fixed Income+” products.

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 returns exceeding 10% year-to-date, including ICBC Tainhui A, Golden Eagle Annual Postal Benefit One-Year Holding A, China Merchants AnDing 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 three-year 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 have continued to grow steadily in scale this year,” Jiang Rui said. The reasons include, on one hand, low interest rates prompting residents to move their deposits; “Fixed Income+” funds, with moderate volatility, have become an alternative asset for savings. On the other hand, corporate earnings in the A-share market are recovering, with sectors like technology and cyclicals offering space for increased returns, and the convertible bond market also serving as an important source of “plus” yields, supporting performance.

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

For example, Hua’an Zhiliang A, as of March 9, had an 8.79% return this year and a 76.36% return over three years. The fund holds about 40% in stocks, mainly in tech sectors like optical modules and storage chips; Fuguo Jiuli Stable A achieved 61.09% over three years, 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” “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 the market rebound, higher-positioned “Fixed Income+” categories performed well: convertible bond funds had a median return of 22.4%; hybrid bond funds and flexible bond 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 primary bond funds having a median drawdown of only 0.9%; secondary bond funds about 1.9%; convertible bond funds approximately 8.8%.

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

What is a “drawn line” product? 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 hold the line during market corrections, allowing investors to “hold steady and sleep well.”

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

Fangfang also said that, given the structural market in 2025, a large influx of institutional funds seeking flexibility has led to more prominent growth in “sector-focused” products with clear sector bets. By 2026, with about 75 trillion yuan of residents’ long-term deposits maturing, these funds entering the market may favor “drawn line” “Fixed Income+” funds.

For investors’ allocation strategies, Jiang Rui recommends that the explosive growth of “Fixed Income+” in 2025 was driven by a confluence of fund 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, equity selection ability, and drawdown control. Investors should choose products aligned with 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 period strategies to reduce timing risks.

Fangfang suggests that, amid maturing residents’ deposits and low interest rates, the scale of “Fixed Income+” funds may continue to expand, with individual funds becoming an important incremental force in the market. In terms of allocation, a “core-satellite” strategy is recommended: allocate most funds to low-volatility “drawn line” products as the core for steady returns, while using a smaller portion for high-elasticity “sector-focused” products as satellites to seek excess returns. In terms of timing, use dollar-cost averaging and phased building to smooth volatility, avoid chasing high-flying sector products, and focus on long-term holding.