Core Viewpoint - The article highlights the pitfalls of following trendy funds, emphasizing that investors often fall into the "sell old, buy new" trap, which is driven by the financial incentives of financial advisors rather than genuine investment opportunities [1][3]. Group 1: Sales Tactics and Financial Incentives - Financial advisors often push clients to sell old funds and buy new ones, not for the clients' benefit, but to earn higher commissions, which can be two to three times greater for new funds compared to old ones [3][4]. - A typical scenario involves clients like Ms. Zhang, who, influenced by advisors, redeem older funds only to incur losses due to fees and missed opportunities in the old funds [2][4]. Group 2: Costs of Switching Funds - The article outlines three main losses associated with the "sell old, buy new" strategy: 1. Redemption fees for old funds can range from 1% to 1.5%, leading to a loss of 2,000 to 3,000 yuan on a 200,000 yuan redemption [4]. 2. New funds often have a 1-3 month establishment period during which they cannot capitalize on market movements, resulting in missed gains [5]. 3. Large fund sizes can hinder performance, as funds that grow from 1 billion to 10 billion yuan may struggle to deliver returns, with a 40% lower probability of outperforming peers compared to smaller funds [6]. Group 3: Recommendations for Investors - Investors are advised to avoid the "sell old, buy new" strategy unless the old fund is underperforming significantly [7][8]. - Preference should be given to older funds with a proven track record, as they provide historical performance data that new funds lack [9]. - Investors should ask specific questions regarding fees, establishment periods, and differences in investment strategies before accepting recommendations from financial advisors [10]. - It is recommended to choose funds with sizes between 2 billion and 5 billion yuan for better management flexibility, avoiding large funds that may be burdened by scale [11].

Core Insights - The article discusses a significant trend in the mutual fund market where investors are redeeming their funds despite record profits, indicating a shift towards a more cautious investment approach among retail investors [1][2][5]. Fund Performance - In Q3, actively managed equity funds reported profits exceeding 8789 billion yuan, marking a quarterly record high, with total profits for the first three quarters reaching 1.07 trillion yuan, more than five times the amount from the previous year [2][5]. - Over 97% of the 8391 actively managed equity funds achieved positive returns, with 600 funds seeing gains over 50%, and an average return of 23.7%, a significant increase from the previous quarter's 2.8% [2][3]. Redemption Trends - Despite the strong performance, there was a net redemption of 2179.23 billion units in Q3, doubling the 1058.13 billion units redeemed in Q2 [2][3]. - Nearly 70% of actively managed equity funds experienced varying degrees of net redemptions, with 1028 funds redeeming over 100 million units, and nearly 60% of these funds had gains exceeding 20% during the same period [2][3]. Investor Behavior - Many investors, particularly those who entered the market in early 2021, are opting to redeem their funds as they finally see returns, reflecting a growing awareness of profit-taking among retail investors [1][5][6]. - The article notes that the current redemption trend is driven by a "break-even" mentality, as many funds are still recovering from previous losses, with over half of the actively managed equity funds showing negative cumulative returns over the past four years [5][6]. Market Sentiment - Investor sentiment appears cautious, with many expressing skepticism about the sustainability of recent profits, leading to a preference for "locking in" gains rather than reinvesting [6][7]. - The article suggests that the market may be transitioning between different phases of investor behavior, with potential for increased inflows if market conditions remain favorable [6][7].