TAIPEI (Taiwan News) — Nine Taiwan stock funds achieved returns exceeding 100% during the Year of the Snake, outperforming the Taiwan Stock Exchange index, which rose 42.8% over the same period.

Nomura Asset Management Taiwan led the pack with five of the top-performing funds, followed by Jko Asset Management with two. Allianz Global Investors Taiwan and Yuanta Funds each had one fund in the top tier, according to UDN Money.

Wu Po-ya (吳帛亞), fund manager at Nomura, said the strong results stemmed from selecting stocks aligned with industry trends and concentrating on investments considered most promising.

Funds allow investors to pool capital and entrust fund managers to make professional investment decisions across stocks, bonds, and other securities. Managers determine what to buy or sell and when, aiming to maximize returns while managing risk, according to Sinotrade.

The Jko Small Capital Fund topped the list with a 118.46% return. Its portfolio is heavily weighted in high-precision electronics manufacturer Jentech Precision Industrial, semiconductor testing solutions provider Mpi, and memory-related firms Phison Electronics and Nanya Technology, each accounting for more than 6% of the fund’s holdings as of 2025, according to Anue.

Other Taiwan stock funds with returns above 100%, ranked from highest to lowest, include: Jko Taiwan Fund, Nomura Taiwan High Tech Fund, Nomura Taiwan High Tech Selection Fund, Nomura Taiwan Growth Selection Focus Fund, Nomura Taiwan Growth Selection Fund, Allianz Global Investors Taiwan Technology Fund, Yuanta Mainstream Equity Fund, and Nomura Taiwan Growth Fund. Gains ranged from 117.6-102.5%.

Almost all of the funds held TSMC heavily in their portfolios. Over the Year of the Snake, the chipmaker rose NT$780, or 68.7% to NT$1,915, according to CNA.

Second-ranked Jko Taiwan Fund focused on memory-related companies, including Phison Electronics, Nanya Technology, and Winbond Electronics. Third-ranked Nomura’s Taiwan High Tech Fund held Phison Electronics at 9.19%, Nanya Technology at 8.2%, and TSMC at 7.94%.

Strong demand for high-capacity, high-performance memory chips, fueled by artificial intelligence applications, has boosted the memory market. Major manufacturers such as Micron, Samsung, and SK Hynix have redirected resources to AI server memory production, tightening supply for other segments and driving prices higher, according to Silicon Power.

Hsieh Wen-hsiung (謝文雄), fund manager of Nomura Taiwan High Tech and High Tech Selection funds, said AI market demand remains strong, though performance varies across models. He added that Taiwan continues to benefit from global cloud service providers’ investments in AI infrastructure, and semiconductor and AI supply chains remain a long-term investment opportunity.

Unlike picking individual stocks, which relies entirely on an investor’s own judgment, stock funds allow investors to entrust capital to fund managers. Investment decisions aim to achieve returns that outperform the broader market, according to Anue.