Core Viewpoint - The current market environment has led to increased volatility in the A-share market, with technology stocks experiencing significant pullbacks, making multi-asset FOF products an attractive option for investors seeking stability [1][2]. Group 1: Multi-Asset FOF Benefits - Multi-asset allocation effectively responds to economic cycle fluctuations, helping to mitigate risks and smooth out portfolio volatility by including assets with low correlations [2][5]. - FOF funds aim to balance returns and drawdowns by diversifying across low-correlation assets, enhancing the Sharpe ratio while minimizing portfolio drawdowns [3][6]. - The FOF index has shown a 12.96% increase from November 1, 2020, to October 31, 2025, outperforming both the equity fund index and the CSI 300 index during downturns [3][4]. Group 2: Market Trends and FOF Growth - As of September 30, 2023, public FOF shares increased by 35.3 billion shares (27% growth) and the scale rose by 54.6 billion yuan (41% growth), indicating market recognition of FOF products for risk diversification [4]. - The evolution of FOF has transitioned from a focus on selecting stock funds to a comprehensive asset allocation tool across various categories and markets [4][5]. Group 3: Professional Management and Strategy - FOFs are managed by professional fund managers who conduct in-depth market research and adjust allocations based on macroeconomic conditions [6][8]. - The investment philosophy emphasizes absolute returns, focusing on controlling risks from asset valuation, price volatility, and macroeconomic factors [8][10]. - The recent performance of the Guotai Minze Balanced Pension Target Three-Year Holding Period FOF achieved a 13.52% return over the past year, exceeding its benchmark by 5.29% [8][10]. Group 4: Market Outlook - The market is currently experiencing a slight contraction around the 4000-point mark, with a shift from extreme differentiation to balance, suggesting a stable medium-term upward trend despite short-term adjustments [10][11]. - The conclusion of major events and the release of quarterly reports are expected to reduce uncertainty, allowing for new investment opportunities in quality assets [11].