Core Viewpoint - The article emphasizes the importance of "risk budgeting" in investment strategies, suggesting that investors should focus not only on potential returns but also on how much loss they can tolerate in extreme market conditions [2][5]. Group 1: Risk Budgeting Concept - "Risk budgeting" is defined as the process of allocating risk contributions among different asset classes based on individual risk preferences, which is crucial for maintaining a balanced investment portfolio [5]. - The analogy of boxing is used to illustrate that just as a boxer must defend against counterattacks, investors must prepare for potential market downturns to avoid being "knocked out" by sudden losses [5][7]. Group 2: Defensive Investment Strategies - A well-structured investment portfolio should include a "defensive" position that protects the overall investment, allowing for more aggressive positions in higher-risk assets [7]. - In a low-interest-rate environment, pure bond assets can serve as a stabilizing force in a portfolio, providing lower volatility and consistent returns over time [7][10]. Group 3: Performance Metrics of Bond Indices - The pure bond fund index has shown a total return of 46.40% over a specified period, with an annualized return of 3.63% and a low annualized volatility of 1.20% [10]. - In comparison, the mixed bond index has a higher total return of 53.84% but also exhibits greater volatility with an annualized volatility of 4.87% and a maximum drawdown of -12.02% [10].