Core Insights - Funds play a crucial role in asset allocation, which involves distributing capital across various asset types to mitigate risk and pursue reasonable returns [1] - Investors must clarify their investment goals and risk tolerance, as these factors vary significantly among individuals [1] - Constructing a fund portfolio is essential for effective asset allocation, requiring the selection of different types of funds to cover multiple asset classes [2] - Regular evaluation and adjustment of asset allocation is necessary due to changing market conditions and asset performance [3] Group 1 - Funds are important investment tools for asset allocation, which aims to diversify risk and achieve reasonable returns [1] - Investors' goals can range from short-term capital appreciation to long-term wealth accumulation, influenced by factors like age and financial stability [1] - Young investors typically have a higher risk tolerance, while those nearing retirement may prioritize asset stability [1] Group 2 - Building a fund portfolio involves selecting various fund types, such as equity funds for higher potential returns and bond funds for stability [2] - Different styles of equity funds, like growth and value funds, perform differently in various market conditions, allowing for optimized asset allocation through diversification [2] Group 3 - Asset allocation is not a one-time task; it requires periodic assessment and adjustments to align with changing market trends and investor goals [3] - The need for adjustments arises when the original asset allocation deviates from the set targets due to market fluctuations [3]