Core Viewpoint - The A-share market has reached a ten-year high, prompting investors to focus on strategies for positioning above 3800 points, with a strong emphasis on growth styles and the potential for value styles to complement investment portfolios [1] Group 1: Market Overview - The current market is characterized by a hot trend, with growth styles continuing to perform well, while value styles may become an important addition to investment strategies [1] - The launch of the Silver Hua Selected Value Return Fund (Class A: 023839, Class C: 023840) on September 1 is expected to help investors seize opportunities in equity investments [1] Group 2: Fund Management and Performance - Zhang Teng, the fund manager, has a strong educational background and extensive experience in the securities industry, focusing on sectors such as coal, non-ferrous metals, and public utilities [1] - As of August 15, 2025, the Silver Hua Ruihe Flexible Allocation Mixed Fund (005544) has shown a year-to-date net value growth rate of 29.69%, significantly outperforming its benchmark [2] - The fund's performance over the past year has been impressive, with a net value growth rate of 45.77%, ranking 84 out of 415 in its category [2] Group 3: Investment Strategy - The current A-share market exhibits clear cycles and style rotations, with value styles showing strong adaptability to market conditions [2] - Short-term indicators suggest a potential reversal from growth to value styles, as low-positioned consumer and cyclical sectors are expected to see a rebound [2] - Long-term economic shifts in China, characterized by a transition to a broadly low-interest-rate environment, are increasing the attractiveness of value stocks with high dividends and low valuations [2]

Core Viewpoint - The article discusses the impact of geopolitical risks and market volatility on investment strategies, emphasizing the importance of diversification in investment portfolios to mitigate risks in a changing environment [2][3]. Group 1: Diversification Concept - Diversification is described as the only "free lunch" in investing, where the overall risk of a portfolio is not merely the sum of individual asset risks but is influenced by the interactions between assets [3][5]. - The correlation coefficient is a key metric for understanding the relationship between asset price movements, with values ranging from 1 (perfectly correlated) to -1 (perfectly inversely correlated) [4][5]. - Combining assets with correlation coefficients below 1 can reduce overall risk, and lower correlation enhances the effectiveness of diversification [5][8]. Group 2: Historical Context and Changing Correlations - Historical data shows that correlations between A-shares and global markets fluctuate, indicating that past effective diversification strategies may not hold in the future [9][10]. - Since 2021, the correlation between A-shares and developed markets like the US and Japan has decreased, enhancing the diversification value for A-share investors [13]. - Conversely, correlations with emerging markets have increased since 2017, partly due to China's growing weight in emerging market indices [13][14]. Group 3: Building a "Anti-Fragile" Portfolio - The article suggests that merely investing in overseas assets is insufficient for effective risk diversification; a more comprehensive approach is needed that spans multiple asset classes [19][20]. - The changing correlation dynamics among major asset classes highlight the complexity and challenges of constructing a diversified investment portfolio [21][22]. - Continuous monitoring of asset correlations and dynamic adjustments to the portfolio are essential for effective management in a complex investment environment [23].