Group 1 - The number of newly established index-enhanced funds has reached 76 this year, surpassing the total for the previous year, indicating a growing trend in index-based investment [1] - The increase in public funds' interest in index-enhanced funds is attributed to three main reasons: disillusionment with star fund managers, attractive new indices launched by index companies, and regulatory encouragement for index-based investments [1][2] - Leading fund sales platforms are focusing on index-enhanced funds due to their potential to outperform benchmark indices, reflecting a shift towards mainstream index-based investment strategies [1][2] Group 2 - Small-cap index-enhanced funds have shown impressive performance this year, with indices like the CSI 1000 and CSI 2000 outperforming large-cap indices such as the CSI 300, making it easier to achieve excess returns [2] - Excess returns from index-enhanced funds primarily come from stock selection models that overweight and underweight index constituents, as well as capturing short-term market styles [2] - Challenges for index-enhanced funds include strategy crowding due to the expansion of these products and frequent market style shifts, which may dilute excess returns [2] Group 3 - Current investment opportunities are seen in the Hang Seng Tech Index, Dividend Index, and the Sci-Tech Innovation Board Composite Index, as Chinese assets are perceived to be undervalued compared to global markets [3] - The Hang Seng Tech Index includes core assets from China's technology and internet sectors, which are significantly undervalued compared to the Nasdaq Index, presenting a potential for substantial gains upon valuation re-rating [3] - The Dividend Index has shown strong long-term performance with an annualized return of around 14% since 2014, benefiting from the current low-interest-rate environment [3] - Investment in the Sci-Tech Innovation Board Composite Index is considered valuable due to its broad coverage and representation in the technology sector, which is expected to be a key investment theme in the coming years [3]