Core Viewpoint - The article discusses the phenomenon of fund net value rising while experiencing net redemptions, questioning whether this is a sound investment decision for investors [1][2]. Group 1: Fund Performance and Market Trends - Since September 24 of the previous year, the Chinese capital market has experienced a strong upward trend, leading to a positive cycle of profit-making effects and incremental capital [1]. - Despite the improved market sentiment, actively managed equity public funds have not seen significant growth in their shares and have instead experienced continuous net redemptions [1][3]. Group 2: Historical Context of Fund Redemptions - Historical data shows that the phenomenon of fund net value rising while experiencing redemptions is not uncommon, with similar occurrences noted during previous market rallies [3]. - Many investors tend to redeem their funds after experiencing a long recovery period, often leading to a pattern of redeeming after reaching breakeven [3][5]. Group 3: Recovery and Long-term Performance - An analysis of 2,418 public funds established since 2001 reveals that over half of the more than 3,300 instances of drawdowns exceeding 20% have fully recovered [6]. - Funds that have experienced significant drawdowns often continue to provide returns to patient investors, with a probability of over 75% for positive returns if held for an additional six months to two years post-recovery [6][8]. Group 4: Investment Decision-Making - Investors often base their redemption decisions on the cost price or net value during drawdowns, which can lead to impulsive actions driven by loss aversion [12]. - Redemption decisions should consider future risk and return comparisons, including current market conditions and personal investment goals [12][13]. Group 5: Risks of Timing and Reallocation - Timing the market is challenging, and missing out on the best trading days can significantly reduce overall returns, as evidenced by the performance of equity mixed funds since 2014 [13][14]. - Switching to other funds after a redemption may not yield better results, as historical data indicates that 61% of original funds outperformed the top 10% of funds from the previous year [16][17].

Market Performance - The A-share market showed strong performance on August 13, with the Shanghai Composite Index breaking the high point from October 8 of the previous year, reaching a nearly four-year high [1] - The Shenzhen Component Index and the ChiNext Index also reached their annual peaks, with total trading volume exceeding 2 trillion yuan for the first time in 114 trading days [1] - Over 2,700 stocks rose, led by growth sectors such as non-ferrous metals and AI hardware [1] Fund Performance - Despite the strong market indices, not all funds benefited, with over 2,700 out of more than 13,000 funds having unit net values below the level of October 8 of the previous year [1] - Notably, eight large-cap equity funds managed by well-known fund managers are facing issues with "net value recovery lag" [1] Specific Fund Analysis - The E Fund Consumer Industry fund (110022.OF) saw its unit net value drop by 0.50 yuan to 3.468 yuan, with a year-to-date return of -3.48%, despite a scale of 168.54 billion yuan [3][4] - The Invesco Great Wall New Emerging Growth A fund (260108.OF) experienced a net value decline of 0.29 yuan to 1.745 yuan, with a year-to-date return of -0.17% and a scale of 188.54 billion yuan [7][9] - The Fortune Select Growth A fund (161005.OF) had a slight net value drop of 0.11 yuan to 2.623 yuan, but achieved a year-to-date return of 8.22% [10] - The E Fund Blue Chip Select fund (005827.OF) reported a net value decrease of 0.08 yuan to 1.880 yuan, with a year-to-date return of 7.87% [12] - The Qian Guo Xu Yuan Three-Year Holding A fund (016709.OF) saw a minor net value drop of 0.01 yuan to 0.820 yuan, with a year-to-date return of 9.23% [15] - The Silver Hua Wealth Theme A fund (180012.OF) and the GF Stable Growth A fund (270002.OF) both experienced a net value decline of 0.008 yuan, with year-to-date returns of 2.71% and 4.58%, respectively [18] Market Insights - The decline in the E Fund Consumer Industry fund is attributed to the significant drop in liquor stocks in the fourth quarter of last year and a sluggish recovery in the consumer sector this year [4] - Fund managers express concerns over slow domestic demand recovery and low inflation, but maintain confidence in the long-term economic outlook [9][14] - The current market environment highlights a divergence between index performance and fund net values, signaling a need for investors to assess funds' maximum drawdown and recovery capabilities [18]