A total of 354 mutual funds were de-authorised last year, with about 15 per cent - or 53 funds - citing lack of cost efficiency as the primary reason for their closure, according to the Securities and Futures Commission.
Mergers and restructurings were the other reasons for fund managers taking the products off the market.
Many of the funds have continued to operate in other jurisdictions but are no longer on offer to local investors, for various reasons.
In the same period, 436 new products were granted authorisation, predominantly fixed-income and guaranteed products, as the local fund industry adapted to a changing investment climate and more cautious investor appetites.
Fund managers have previously said that investors would continue to focus on guaranteed funds this year, as such funds assured them of the capital and some profits over a period of time.
Three hedge funds for retail investors also made their debuts on the Hong Kong market.