Group 1 - The 30-year Treasury ETF experienced a significant drop of 1.32% on Thursday, reaching a new low since the adjustment began, and has declined 5.86% year-to-date with a maximum drawdown of 8.2% [1][2] - Compared to previous market corrections, the current adjustment is less severe than the maximum drawdowns of 16.75% in 2017 and 13.64% in 2013, indicating a relatively milder market reaction [2] - The volatility of the 30-year Treasury ETF reflects the behavior of risk-seeking funds, which were actively buying during the downturn from July to September and continued to flow into the market during the October rebound [4] Group 2 - Starting from November 20, there has been a continuous outflow of funds, leading to a rapid decline in the bond market, which is perceived differently by large investors compared to previous downturns [5] - The decline in the bond market is attributed to several factors, including insufficient monetary policy easing as indicated by the central bank's net bond purchases of only 50 billion yuan in November, which fell short of market expectations [7] - Concerns over liquidity have increased due to the central bank's operations, including a net withdrawal of 1,756 billion yuan on the same day, alongside upcoming 1 trillion yuan reverse repos maturing in December [7] Group 3 - Market sentiment has been impacted by credit risk events, notably related to Vanke bonds, which have affected investor confidence [8] - The yield curve has been adjusting as expectations for economic recovery have shifted, leading to a gradual restoration of the yield spread between long-term and short-term bonds since July [8] - Institutional selling has been observed, with the 30-year Treasury ETF experiencing net redemptions, attributed to various factors such as fund redemptions and regulatory constraints on banks [10] Group 4 - For ordinary investors, traditional bond funds have shown a maximum drawdown of no more than 3% over the past decade, making them a more suitable option compared to the high volatility of the 30-year Treasury ETF [12] - The "fixed income plus" strategy, particularly low-volatility options, is gaining traction as both stock and bond markets face challenges, with many investors opting for professional fund managers to navigate these conditions [14] - The secondary bond fund index has increased by 13.19% since 2021, with a maximum drawdown of 6.93%, indicating a favorable performance for this investment category [14]

Core Viewpoint - The article emphasizes the selection of low-volatility fixed income plus funds as a suitable investment option for medium-term unused funds or remaining amounts from long-term investments, highlighting six recommended funds based on specific criteria [3][22]. Selection Criteria - The funds must have a scale of over 200 million yuan to avoid the risk of liquidation and ensure adequate attention from the fund company [5]. - The maximum drawdown over the past five years should be less than 5% to maintain low volatility [8]. - The equity allocation should be between 5% and 10% to balance between ensuring some equity exposure and minimizing volatility [8]. - The funds should be open-ended and established for more than five years to provide a reliable performance reference [8]. - The annualized return over the past five years should exceed 5% to ensure relatively high returns alongside low volatility [8]. Fund Performance Summary - The selected funds include: - **Huatai Bairui Dingli Mixed A**: Annualized return of 7.78%, maximum drawdown of 4.23%, and a fund size of 3.746 billion yuan [7]. - **Jiaoyin Zengli Enhanced Bond A**: Annualized return of 6.94%, maximum drawdown of 4.68%, and a fund size of 1.2 billion yuan [7]. - **Huaxia Dinghong Bond A**: Annualized return of 5.46%, maximum drawdown of 4.81%, and a fund size of 1.1 billion yuan [7]. - **Southern Songguang A**: Annualized return of 5.30%, maximum drawdown of 2.02%, and a fund size of 200 million yuan [7]. - **Jinying Xinrui Mixed A**: Annualized return of 4.97%, maximum drawdown of 4.08%, and a fund size of 2.4 billion yuan [7]. - **Fengchao Hengli Bond A**: Annualized return of 4.31%, maximum drawdown of 4.14%, and a fund size of 4.17 billion yuan [7]. Investment Advantages - Low-volatility fixed income plus funds offer excellent risk management and drawdown control, resulting in a smoother net value curve for investors [19]. - They provide better return potential than pure bond funds, especially during structural opportunities in the stock market [20]. - These funds serve as a convenient tool for risk-averse investors to achieve a balanced stock-bond allocation without the hassle of manual adjustments [20]. Investment Considerations - The funds may exhibit limited return elasticity and could underperform in a bull market due to their low equity allocation [21]. - They are not entirely "capital-protected," as there remains a risk of loss during extreme market conditions [21]. - The success of these funds heavily relies on the fund manager's ability to make sound asset allocation and security selection decisions [21]. Conclusion - The article concludes that the six identified low-volatility fixed income plus funds are suitable for conservative investment strategies, emphasizing the importance of long-term holding to achieve positive returns despite potential short-term losses [22].

Market Review - The equity market saw most major indices rise, with the STAR 50 index showing the largest increase of 5.48% [4][5] - The bond market experienced an upward trend in both short and long-term interest rates, with the 10-year government bond yield rising by 4.10 basis points to 1.867% [8][12] - The TMT sector rebounded collectively, while the majority of the 31 industries tracked by Shenwan saw gains [4][5] Equity Product Allocation Strategy - Event-driven strategies include monitoring the anti-dumping investigation initiated by the Ministry of Commerce against imported chips from the US, which may benefit funds like Bosera Semiconductor Theme A (012650) and ICBC Emerging Manufacturing A (009707) [18] - The automotive industry is highlighted due to the "Automotive Industry Stabilization Growth Work Plan (2025-2026)" released by multiple departments, with funds such as Huaxia Automotive Industry A (017721) being of interest [19] - The upcoming World Energy Storage Conference from September 16 to 18 in Ningde, Fujian, is expected to spotlight funds like Jiashi Intelligent Automotive (002168) [20] Asset Allocation Strategy - A balanced core plus barbell strategy is recommended, focusing on dividend and technology/high-end manufacturing sectors [22] - The attractiveness of dividend assets is emphasized due to the low interest rate environment and government support for regular dividend distributions [22][23] - The technology growth direction is supported by national policies and the urgency for domestic alternatives due to overseas technology export restrictions [23][24] Stable Product Allocation Strategy - The central bank's recent net injection of 196.1 billion yuan indicates a shift from a tight to a loose monetary environment [28] - August inflation data shows a year-on-year decrease of 0.4%, suggesting early signs of anti-involution effects [28] - The total social financing data for August indicates a broad money (M2) balance of 331.98 trillion yuan, growing by 8.8% year-on-year [28] Key Focus Products - Recommended funds include Nord Short Bond A (005350) and Guotai Li'an Medium and Short Bond A (016947) for stable returns [2][33] - For those looking to enhance overall returns, it is suggested to consider fixed income plus funds while being mindful of associated risks [32][33]

Market Review - The equity market saw a broad increase, with the Shanghai Composite Index rising by 2.11%, the highest among major indices [4][7] - The advanced manufacturing sector experienced a collective rebound, with notable increases in industries such as defense and military (5.93%) and non-ferrous metals (5.78%) [4][5] - The bond market showed a downward trend in both short and long-term interest rates, with the 10-year government bond yield decreasing by 1.68 basis points to 1.706% [8][10] Equity Product Allocation Strategy - Event-driven strategies include focusing on funds related to the 2025 World Robot Conference and the upcoming Low Altitude Economy Conference, with specific funds highlighted for investment [12][13][14] - The asset allocation strategy suggests a balanced core with a barbell approach, emphasizing dividend and technology sectors, with recommended funds listed [16][20] Stable Product Allocation Strategy - The analysis indicates a net injection of 163.5 billion yuan by the central bank, maintaining a loose monetary environment [22] - July export data showed resilience, with a total export value of 321.78 billion USD, reflecting a year-on-year growth of 7.2% [22] - The report highlights the importance of monitoring convertible bonds due to potential volatility risks [23][27]