Core Viewpoint - The article emphasizes the evolution of Fund of Funds (FOF) from merely selecting funds to providing comprehensive asset allocation solutions, highlighting the importance of constructing a robust investment strategy through diversified asset classes [1] Group 1: Building Quality Beta (β) - Quality β serves as the foundation for investment returns, akin to a solid base for a building; without it, even the best strategies cannot sustain value [3] - A diversified approach to asset allocation, incorporating equities, fixed income, gold, and overseas markets, is essential to reduce overall volatility and achieve reasonable returns [3][4] Group 2: Finding Alpha (α) Above Beta - The stability of α is more crucial than its sharpness; investors should focus on sustainable α rather than chasing short-term high returns, which are often unsustainable [4][5] - Historical data indicates that high α can lead to significant volatility, which may ultimately diminish overall returns; thus, a consistent performance is preferred [5][7] Group 3: Matching Risk Tolerance - Rational investing can help mitigate behavioral losses (γ); understanding one's risk tolerance is vital for long-term investment success [8][10] - Investors with lower risk tolerance should favor portfolios with a higher allocation to fixed income assets to reduce exposure to equity market volatility, while those with higher risk tolerance can afford greater equity exposure [10][11]