Core Insights - The article highlights a trend where several top-performing funds in the pharmaceutical, military, and new consumption sectors are experiencing significant redemption pressure despite a rising industry index [1] - Innovative drug funds, which have shown exceptional performance, are seeking to amend their fund contracts to avoid liquidation, indicating a divergence in investment strategies within the booming stock fund market [1] - Funds facing redemption pressure and potential termination risks are primarily those that have performed well this year, with many achieving good returns and nearing or just completing their net asset value recovery [1]

Core Viewpoint - The recent trend of high-performing funds implementing "purchase limits" reflects a shift from scale-oriented strategies to investor return-oriented strategies, aimed at protecting existing fund holders' interests amidst a hot market [1][3]. Group 1: Fund Purchase Limits - Several high-performing funds have recently announced limits on large purchases, including the Caizhong Securities Asset Management's Digital Economy Mixed Fund, which has a return rate of 56.37% year-to-date as of August 18 [1]. - The Great Wall Pharmaceutical Industry Selected Mixed Fund and the CCB Flexible Allocation Mixed Fund have also set purchase limits, with year-to-date return rates of 135.09% and 49.74%, respectively [2]. - The招商成长量化选股 fund has implemented its second purchase limit this year, with a return rate of 29.55% as of August 18 [2]. Group 2: Reasons for Purchase Limits - Fund managers indicate that limiting purchases is necessary to protect performance, as large inflows at high net asset values can dilute returns and lead to inefficient cash management [2][3]. - Controlling fund size is crucial to avoid operational constraints on portfolio adjustments, especially when the fund size exceeds the manager's capability, which could lead to significant net asset value fluctuations [3]. Group 3: Market Focus and Alternatives - The limited funds primarily focus on popular sectors such as innovative pharmaceuticals, technology, and military industries, which are currently crowded, suggesting that now may not be the optimal time to invest [3]. - Fund companies are exploring other niche sectors and offering products like "fixed income plus" and FOFs to provide investors with a balanced selection [3][4]. - There is a growing interest in "fixed income plus" products and FOFs, with over 90% of FOFs achieving positive returns this year, making them an attractive option for investors seeking stable returns [4].

Core Viewpoint - The article narrates a personal investment journey, highlighting the transition from traditional savings to active investment in funds, emphasizing the importance of discipline and learning in wealth accumulation [1][8]. Group 1: Initial Investment Experience - The author began investing in funds after realizing that traditional savings were insufficient due to inflation, with a notable shift occurring in 2008 when they deposited their savings into a bank [1]. - The initial investment strategy involved cautious allocation of savings into various funds, akin to a farmer sowing seeds, which led to early successes in fund investments [2]. Group 2: Learning from Mistakes - The author experienced both gains and losses, learning that discipline in investment is more reliable than luck, as demonstrated by the premature selling of a profitable wine index fund [4]. - A significant lesson was learned during the internet fund craze, where heavy losses were incurred from a poorly timed investment in an ETF, illustrating the consequences of greed and lack of strategy [6]. Group 3: Evolving Investment Strategy - The current investment approach involves allocating 10% of funds for market experimentation while keeping 90% in stable products like government bonds and money market funds, resulting in a maximum drawdown of less than 3% since 2018 [8]. - The author emphasizes that investment is akin to a form of self-discipline and growth, where understanding and managing desires is crucial for financial success [8].

Core Viewpoint - The article reflects on the lessons learned from four years of investment experience, emphasizing that investing requires rational planning and long-term commitment rather than following trends blindly [3]. Group 1: The Cost of Following Trends - The investment in popular funds, particularly in sectors like pharmaceuticals and military, led to significant losses when market conditions changed, revealing the risks of single-sector investments [4][6]. - A specific growth value fund experienced a maximum drawdown of over 50% due to heavy exposure to technology stocks during market downturns [4]. Group 2: Misconceptions About Dollar-Cost Averaging - Increasing investment amounts in a declining market did not yield the expected results, as the account faced multiple interruptions due to insufficient funds, missing opportunities to buy at lower prices [9]. - The failure to adjust investment strategies based on market valuations resulted in continued losses, highlighting the importance of timely decision-making [10][12]. Group 3: Emotional Decision-Making - During a market rally in September 2024, the account still showed a loss of over 40%, leading to a decision to cut losses by redeeming a quarter of the investment, which ultimately missed out on subsequent gains [14][15]. - The experience underscored the need for stop-loss decisions to be based on fundamentals rather than emotions, and the importance of investing with disposable income [16]. Group 4: Key Lessons and Insights - Diversification is crucial to survival, as over-concentration in high-volatility sectors can lead to significant setbacks during corrections; a balanced approach with value funds or fixed-income products is recommended [18]. - A long-term perspective and disciplined execution are essential, with stable investment amounts and dynamic valuation thresholds for profit-taking [20][21]. - Independent thinking is more valuable than following trends, as short-term performance may not reflect long-term stability; index funds are suggested for long-term investments over active funds [22]. Group 5: Rebuilding Investment Confidence - The company is now reallocating previously liquidated funds into diversified indices like CSI 300, CSI 500, and major U.S. indices, adhering to a "five-year hold + annual review" strategy to achieve recovery through low-cost averaging [24]. - The narrative concludes with a belief that respecting market dynamics and maintaining a disciplined approach are key to preserving capital and achieving long-term success [25][26].