Core Viewpoint - The article emphasizes the importance of equity allocation in investment strategies, particularly in the context of the current market environment, which has seen significant volatility and the need for a balanced approach to risk and return [2][4]. Group 1: Market Performance and Trends - Since the rebound began on September 24 last year, the Shanghai Composite Index and CSI 300 have risen by 40.34% and 39.97% respectively, while the growth-style indices represented by the STAR 50 and ChiNext have shown even stronger performance with increases of 108.59% and 88.83% [2]. - Despite the ongoing slow recovery of the fundamentals and potential slowdown in capital inflows, the market is expected to experience increased volatility, as evidenced by significant fluctuations in major indices on September 4 [2]. Group 2: Importance of Equity Assets - Equity markets are crucial for ordinary investors to share in the growth dividends of quality companies and achieve asset preservation and appreciation [4]. - Historical data indicates that, despite cyclical volatility in the A-share market, equity-oriented fund indices have delivered considerable long-term returns, significantly outperforming most traditional financial products [4]. Group 3: Investment Strategy and Portfolio Construction - Investors are advised against blindly chasing market hotspots or single high-volatility sectors, as significant drawdowns can lead to substantial losses [4][7]. - The core objective of constructing an investment portfolio is to manage uncertainty by diversifying across various assets with different risk-return profiles, aiming for risk dispersion and smoother fluctuations [4][7]. Group 4: Bottom Positioning in Bull Markets - In a bull market, it is essential to emphasize a "bottom position" mindset, reserving a portion of the portfolio for stable "bottom-position" funds that do not chase single themes or market hotspots [6][8]. - Bottom-position funds typically exhibit strong risk control through balanced industry allocation and diversified holdings, avoiding high exposure to any single industry or stock [7]. Group 5: Performance of Bottom-Position Funds - Data shows that bottom-position funds may not perform outstandingly in the short term but tend to excel in the medium to long term, characterized by low volatility and drawdown [7][8]. - For instance, two funds managed by Zhao Xiaodong have achieved returns of 43.27% and 41.22% over the past three years, significantly outperforming the Wind mixed equity fund index, which only rose by 5.03% during the same period [8]. Group 6: Strategic Allocation Recommendations - Investors are encouraged to scientifically allocate between bottom-position funds and high-volatility products based on their risk tolerance and investment goals [9]. - It is crucial for investors to maintain a long-term investment philosophy and avoid altering their strategies due to short-term market fluctuations to achieve sustainable returns over time [9].

Core Viewpoint - The active equity fund market has shown significant recovery in performance, with a notable increase in net asset values and a majority of funds achieving positive returns in 2023 [2][3][10]. Performance Summary - In July, nearly 800 active equity funds reached historical net asset value highs, with 94% of products achieving positive returns and an average annual return of 13.89% [1][2][3]. - The number of funds that doubled their returns this year reached four, with the top-performing fund, Huatai-PB Hong Kong Advantage Selection, achieving a return of 135.23% [2][3]. - The Wind偏股混合基金指数 recorded a return of 14.49% this year, indicating that most active equity fund holders who entered the market in 2023 are now profitable [3]. Fund Manager Performance - Several veteran fund managers have successfully turned around their funds, with notable performances such as Guangfa Growth Navigator achieving an annual return of 88.44% [5]. - Fund managers with over 20 years of experience, such as Guo Jun, have also delivered high returns, with the Bosera New Income fund achieving 27.85% this year [5][6]. - The trend of "using feet to vote" is evident, as funds with sustained excess returns are attracting significant capital inflows, with some funds seeing their sizes increase by over five times in the second quarter [7][10]. Market Dynamics - The recovery in fund performance has led to a weakening of the constraints imposed by fund size on performance, with several large funds reaching new net asset value highs [6]. - Investors are increasingly willing to pursue high-performance funds, moving away from the "fear of heights" mentality that previously dominated the market [8][10]. - Funds that failed to outperform the偏股混合基金指数 have seen their sizes shrink, becoming "mini" funds with less than 50 million yuan in assets [9]. Trust Rebuilding Efforts - Despite the positive performance, many investors remain cautious due to past experiences, leading to a continued decline in the size of some active equity funds [10]. - Fund companies are implementing measures to rebuild trust, including enhancing research capabilities, ensuring transparency, and binding fund manager interests to performance [10][11]. - Regulatory initiatives are also expected to promote high-quality development in the public fund sector, further enhancing investor confidence in active equity funds [11].