Core Viewpoint - The article emphasizes the importance of constructing a balanced investment portfolio that combines equity and bond assets to manage risk and achieve expected returns. It discusses strategies to reduce portfolio volatility without significantly reducing equity exposure [4][8]. Group 1: Portfolio Construction - The framework for building a portfolio involves a mix of equity and bond assets, where bonds act as a shield and equities as a spear to balance volatility [8]. - The article suggests using a "risk parity" strategy to lower equity weight, thus reducing overall drawdown risk, but notes that this may compromise expected returns [4]. - To mitigate volatility without drastically cutting equity allocation, diversifying across different markets and styles is recommended [5]. Group 2: Index Styles and Characteristics - A detailed document categorizes common indices by style, aiding investors in constructing their portfolios based on style preferences [6]. - The article outlines various index styles, including broad-based indices like the CSI 300 and sector-specific indices that focus on growth, such as the ChiNext and STAR Market indices [16][18]. - It highlights the importance of understanding the characteristics of different indices, such as market capitalization and style orientation, to achieve a balanced portfolio [8][24]. Group 3: Examples of Balanced Portfolios - The article provides examples of balanced portfolios, such as combining the CSI 300 with growth-oriented indices like the ChiNext, illustrating the "barbell strategy" [18]. - It emphasizes the use of core broad-based indices as starting points for portfolio construction due to their diversified nature and balanced style [15]. - The article also discusses the role of strategy indices, which can enhance portfolio diversity and richness by incorporating various investment styles [19][23].