Core Viewpoint - The article emphasizes the pitfalls of having an excessive number of funds in an investment portfolio, likening it to running a supermarket, which can lead to false diversification and management difficulties [6][17]. Group 1: Reasons for Excessive Fund Holdings - Fear of Missing Out (FOMO) drives investors to buy into new concepts and themes, leading to an overwhelming number of funds [9]. - Misunderstanding the principle of diversification results in investors believing that holding more funds inherently reduces risk [11]. - Decision paralysis occurs when investors are overwhelmed by choices, leading them to buy multiple funds without a clear strategy [13]. Group 2: Problems with Excessive Fund Holdings - False Diversification: Holding many funds does not guarantee risk diversification, as many funds may share the same underlying assets [18]. - Management Overload: Monitoring numerous funds can be time-consuming and impractical, making it difficult to analyze performance and make informed decisions [22]. Group 3: Steps to Optimize Fund Holdings - Step 1: Define a portfolio structure based on individual risk tolerance and investment goals, including allocations to different types of funds [27][30][34]. - Step 2: Tag each fund according to its category to gain clarity on the portfolio composition [37]. - Step 3: Consolidate similar funds by evaluating them based on performance, drawdown history, fund size, fee structure, and manager experience [41][45][49]. Group 4: Tools and Recommendations - The article suggests using fund comparison tools available in various apps to facilitate the selection process and streamline decision-making [50]. - It introduces a three-part asset allocation tool that helps investors avoid common pitfalls by providing a structured framework for fund selection and management [65][66].

Core Viewpoint - The article emphasizes the importance of having a personal investment system to navigate market fluctuations and make informed decisions, rather than relying on external advice or luck [6][10][14]. Group 1: Investment Strategies - Warren Buffett began reducing his holdings in Apple from Q4 2023, while George Soros increased his investment in the same stock during Q2 and Q3 of 2024, showcasing contrasting investment strategies [4][5]. - The differing decisions of Buffett and Soros stem from their unique investment philosophies: Buffett focuses on value investing and long-term holding, while Soros capitalizes on market momentum and the reflexivity principle [6][7][8]. Group 2: Importance of a Personal Investment System - A user’s experience illustrates the pitfalls of not having a personal investment system, as they missed out on gains during a bull market due to a lack of confidence and understanding of their investment decisions [10][12][14]. - Successful investors maintain a consistent investment system that aligns with their personal values and risk tolerance, which is crucial for long-term success [14]. Group 3: Asset Allocation as an Investment System - The article advocates for asset allocation as the most suitable investment system for ordinary investors, emphasizing the need for understanding the underlying investment philosophy and decision-making process [15][16]. - The "three-part method" of asset allocation is introduced, which includes determining what to buy, how much to invest based on risk tolerance, and when to buy and sell [17][18][20]. Group 4: Practical Application of Asset Allocation - The three-part method encourages diversification across various asset classes to mitigate risks and enhance overall returns, with a focus on long-term investment rather than timing the market [17][20]. - The method also includes a rebalancing feature, allowing investors to adjust their portfolio based on performance, which promotes disciplined investment practices [21].

Group 1 - The article discusses the author's journey into investment and financial management, highlighting the transition from casual saving to a more structured investment approach [2][3]. - The author emphasizes the importance of learning from various financial literature and adapting investment strategies over time, particularly during market downturns [4][10]. - The introduction of the "Three-Part Method" for fund investment is presented as a systematic approach to balance risk and return, utilizing a diversified portfolio [7][11]. Group 2 - The "Three-Part Method" consists of three types of funds: a bond fund, a stock fund, and a commodity fund, aimed at achieving a balanced investment strategy [6][7]. - The article provides performance metrics for the investment portfolio, showing a cumulative return of +78.38% compared to the -4.32% return of the CSI 300 Index, indicating superior performance [9]. - The author highlights the significance of data analysis and historical backtesting in refining investment strategies, ensuring that risk and returns are predictable and manageable [10][11].