Core Viewpoint - The recent performance of A-share market has led to significant profits for public fund products, but many three-year holding period equity funds are still in a loss position, highlighting flaws in the long-term holding design of certain public funds [1][2]. Group 1: Fund Performance and Design Flaws - Approximately 100 three-year equity funds exist, with nearly half currently in a loss position [1]. - Among the 55 funds that are losing, a well-known public fund institution accounts for 12, nearly 20% of the total [1]. - The worst-performing fund has seen a net value decline of nearly 40%, indicating systemic issues rather than isolated managerial errors [1]. Group 2: Market Conditions and Investor Sentiment - The initial design of these equity products aimed to reduce frequent redemptions and provide a stable operating environment for fund managers, but many funds still show significant losses after three years [1][2]. - The disparity between market recovery (with the Shanghai Composite Index rebounding above 3,800 points) and fund performance has created dissatisfaction among investors [1]. Group 3: Industry Implications and Recommendations - The short-term performance pressure on fund managers may lead to conservative strategies that miss rebound opportunities, reflecting a misalignment between product design and market realities [2]. - The industry is warned that a lack of performance support for "long-termism" could lead to a collapse of trust and hinder the development of long-holding period equity funds [2][3]. - Fund companies need to balance product design, research capabilities, and investor education to avoid turning lock-up periods into trust "shackles" rather than value "bridges" [3].