Investors take a dim view of QDII funds (2)

Even though some overseas equity markets are setting new highs, investors are doubtful whether the upswing will continue and many who saw rises in their QDII funds have already locked in profits, said Qu.

"Mainland investors have always been skeptical about the profitability of QDII funds because these investment products, which allow mainland investors to take position in financial products overseas via certain fund management institutions, were officially launched in late 2007 and suffered huge losses the following year thanks to the global financial crisis," Qu explained.

Meanwhile, a senior fund research manager who asked to remain nameless added that some research teams for aggressively managed QDII funds are not large enough to undertake the necessary research work needed to maximize the profitability of these products, a fact which may underscore their weak appeal to investors.