Group 1 - The report highlights that the current valuation levels of the small-cap indices, represented by the CSI 500 and CSI 1000, are reasonable with strong expected earnings, showing a high margin of safety compared to other broad indices [1][8][9] - The CSI 500 and CSI 1000 indices have a balanced industry distribution, making active stock selection challenging, while providing significant opportunities for quantitative stock selection due to their high dispersion [1][16][19] - Quantitative strategies in small-cap indices have a higher ability to generate excess returns, indicating that small-cap stocks possess greater alpha value compared to large-cap stocks [1][26][24] Group 2 - Historical performance shows that the Yingyin CSI 500 Index Enhanced A fund has achieved a steady excess return of 6.6% over the past year, while the Yingyin CSI 1000 Index Enhanced A fund has delivered a significant excess return of 9.7% [2][30] - Both funds maintain a high excess return rate, with a monthly excess return rate of 75%, indicating strong stability in outperforming their benchmarks [2][38] - The alpha generated by these funds primarily comes from stock selection rather than asset allocation or sector allocation, confirming a clear and stable source of excess returns [3][48][51] Group 3 - The Yingyin CSI 500 Index Enhanced A fund is managed by a team with extensive quantitative investment experience, ensuring a robust governance structure and stable operations [4][3] - The fund management strategy focuses on strict control of tracking error while aiming to create excess returns, with a low average tracking deviation [35][36] - The industry allocation of the funds is closely aligned with their respective benchmarks, with minimal deviations, emphasizing a focus on stock selection to achieve excess returns [44][47]