Core Viewpoint - The article discusses the phenomenon of fund net value rising while experiencing net redemptions, questioning whether this is a sound investment decision for investors [1][2]. Group 1: Fund Performance and Market Trends - Since September 24 of the previous year, the Chinese capital market has experienced a strong upward trend, leading to a positive cycle of profit-making effects and incremental capital [1]. - Despite the improved market sentiment, actively managed equity public funds have not seen significant growth in their shares and have instead experienced continuous net redemptions [1][3]. Group 2: Historical Context of Fund Redemptions - Historical data shows that the phenomenon of fund net value rising while experiencing redemptions is not uncommon, with similar occurrences noted during previous market rallies [3]. - Many investors tend to redeem their funds after experiencing a long recovery period, often leading to a pattern of redeeming after reaching breakeven [3][5]. Group 3: Recovery and Long-term Performance - An analysis of 2,418 public funds established since 2001 reveals that over half of the more than 3,300 instances of drawdowns exceeding 20% have fully recovered [6]. - Funds that have experienced significant drawdowns often continue to provide returns to patient investors, with a probability of over 75% for positive returns if held for an additional six months to two years post-recovery [6][8]. Group 4: Investment Decision-Making - Investors often base their redemption decisions on the cost price or net value during drawdowns, which can lead to impulsive actions driven by loss aversion [12]. - Redemption decisions should consider future risk and return comparisons, including current market conditions and personal investment goals [12][13]. Group 5: Risks of Timing and Reallocation - Timing the market is challenging, and missing out on the best trading days can significantly reduce overall returns, as evidenced by the performance of equity mixed funds since 2014 [13][14]. - Switching to other funds after a redemption may not yield better results, as historical data indicates that 61% of original funds outperformed the top 10% of funds from the previous year [16][17].