As the domestic economy gradually stabilized，the economic structure and the enterprises conduction are optimizing constantly on both macro and micro level，while the mutual funds generally had delivered solid earnings for their clients in 2017.Due to the regulatory reasons，the size of bond funds has declined significantly comparing with 2016，while the size of money market funds has been growing rapidly.For 2018，we hold the opinion that the industry will continued the regulatory path of “strong supervision and risk prevention” and the space for regulatory arbitrage will be tightening even more，which may pose challenges for the industry in short term，but also will push the industry to return to its origin of active management.Meanwhile，the rise of Fintech，the approval of FOF funds，and the progressive development of elder-care and pension funds，all have opened up new imagination spaces for the mutual funds industry in 2018.