Core Viewpoint - The recent rise in popularity of the CSI All Share Index among fund companies is attributed to its comprehensive coverage of the A-share market, allowing investors to avoid missing out on market trends while seeking excess returns through quantitative strategies [1][3][12]. Group 1: Characteristics of the CSI All Share Index - The CSI All Share Index, while considered "niche," encompasses a wide range of stocks across large, mid, and small-cap categories, effectively representing the entire A-share market [2]. - The index's balanced allocation helps investors avoid structural pitfalls associated with focusing on specific sectors, providing a sense of security during volatile market conditions [3][4]. Group 2: Demand for Enhanced Index Funds - Fund companies are increasingly interested in creating "enhanced" versions of the CSI All Share Index to meet the investment needs of ordinary investors, who seek to avoid missing market opportunities while also aiming for excess returns [3][12]. - Enhanced index funds utilize quantitative strategies to select higher-quality stocks within the index, allowing for potential excess returns without the risks associated with actively managed funds [4][10]. Group 3: Performance of Enhanced Funds - The "Hongde Smart Selection" fund, which tracks the CSI All Share Index, has consistently outperformed the index since its inception, demonstrating the effectiveness of its quantitative strategies [6][8]. - The fund has shown lower excess drawdowns, indicating that it can retain excess returns even during market fluctuations, making it a reliable option for investors [8][10]. Group 4: Cost-Effectiveness of Public Funds - Public funds generally have lower fees compared to private funds, making them more accessible to ordinary investors. Public funds typically charge fixed management fees, while private funds often take a percentage of profits, which can reduce net returns for investors [11]. - The lower investment threshold for public funds allows more investors to participate, enhancing liquidity and flexibility in investment choices [11]. Group 5: Investment Strategy Recommendations - The current market environment suggests that investors should consider stable, broad-market coverage options like the CSI All Share Index enhanced funds as a foundational investment strategy, rather than chasing high-risk, high-reward opportunities [12][13].

Core Viewpoint - The article discusses the challenges retail investors face in a rapidly rotating market and highlights the potential benefits of using quantitative funds to navigate these conditions [1][2]. Group 1: Market Challenges - Retail investors often fall into the trap of chasing trends, leading to poor timing and missed opportunities [2]. - A lack of thorough research results in investors following trends without understanding, making it difficult to hold positions during market rotations [2]. - High volatility and a tendency to go "all in" without proper asset allocation contribute to significant losses [2]. Group 2: Quantitative Funds Performance - As of August 14, public quantitative funds have an average net value increase of 15.24% this year, outperforming benchmarks by 6.28% [5]. - The total scale of public quantitative funds reached 312.1 billion, reflecting a 5.8% increase since the end of 2024, while private quantitative funds totaled approximately 1.49 trillion, up 6.0% [5]. Group 3: Future Outlook - Institutions like CITIC Securities predict that macroeconomic factors will stabilize, allowing quantitative stock strategies to continue performing well in the second half of the year [6]. - Huabao Securities suggests that despite short-term resistance, the market is likely to maintain an upward trend, with significant rotation among sectors [6]. Group 4: Investment Strategy - A recommended strategy is to adopt a "passive approach" using broad-based quantitative funds, such as those tracking the CSI All Share Index, which covers a wide range of industries [7]. - The Hongde Smart Selection Fund, which employs AI stock selection strategies, has shown a net value increase of 20.36% this year, outperforming the CSI All Share Index by 8.02% [8]. - Hongde Fund has developed a comprehensive quantitative family of products, utilizing multi-factor and AI models to optimize risk and return [8].