Core Insights - Increasing resident funds are flowing into low-volatility, rights-containing funds, indicating a shift from low-risk assets to more stable investment options [1][2] - The popularity of "fixed income +" funds has surged, with a 141% increase in subscription scale and a 70% rise in user holdings year-on-year as of October 15 [1][2] - The performance of the equity market, particularly the Shanghai Composite Index's 16% increase over the past year, has positively influenced the demand for "fixed income +" funds, which have averaged a 6.7% return [1][2] Fund Performance and Investor Behavior - The average maximum drawdown of "fixed income +" funds is 10.3 percentage points lower than that of equity funds, providing a better holding experience for conservative investors [2] - Investors are increasingly favoring "fixed income +" funds due to their consistent positive returns and the declining bank deposit rates, which make these funds more attractive [2] - The expectation of significant market volatility in 2025 is driving investors towards "fixed income +" funds for stable returns, complemented by some equity exposure [2] Market Trends and Regulatory Environment - The China Securities Regulatory Commission's action plan emphasizes the development of low-volatility, rights-containing products, leading to a 26% increase in the establishment of "fixed income +" funds this year [3] - If the A-share market remains active and the economic fundamentals improve, it is anticipated that more funds will flow into the market, enhancing the attractiveness of "fixed income +" products [3]