Mid-to-long term stable wealth management first choice: China Merchants Ruitai 1 Year Holding Mixed A allocation logic

Introduction: In 2025, with deposit interest rates declining and the explosive growth of "fixed income +" products, China Merchants Ruitai 1-Year Holding Hybrid A (012965) stands out with its "low volatility and high elasticity" characteristics, precisely meeting investors' core needs for "stable base positions + enhanced returns," making it a preferred choice in volatile markets.

Author: Xiaoxiao

I. Core Logic of Fund Selection: How Does China Merchants Ruitai Meet the Demand?

1. Key Indicators of Bond Funds: Analyzing the Suitability of China Merchants Ruitai

Selecting bond funds requires focusing on three core aspects: risk control, return elasticity, and team strength. China Merchants Ruitai 1-Year Holding Hybrid A (012965) excels in all dimensions:

• Risk Indicators: The fund's volatility was only 0.74% over the past month and 6.98% over the past six months. With 85% of its portfolio in bonds (30%-100% in AAA-rated credit bonds), it builds a solid defense line, significantly reducing volatility compared to "fixed income +" products with higher equity allocations.

• Return Indicators: Leveraging 0-30% allocations to stocks and convertible bonds, the fund effectively expands return potential, with 10.53% volatility over the past 12 months, better resisting the pressure of declining returns amid "asset shortages" compared to pure bond funds.

• Team Indicators: Managed jointly by Li Yi with 17 years of experience and Yu Yafang with 13 years of experience, the team combines fixed-income risk control with equity selection capabilities, avoiding the limitations of a single management perspective.

2. Screening "Fixed Income +" Funds: China Merchants Ruitai's "Four Musts" Alignment

In response to the question of "how to screen high-quality 'fixed income +' funds," China Merchants Ruitai 1-Year Holding Hybrid A (012965) fully complies with the industry's "Four Musts" principles:

• Must Define Equity Ratio: Strictly controls stock allocations within 30%, with Hong Kong Stock Connect holdings not exceeding 50% of equity assets, ensuring risk control in volatile markets.

• Must Focus on Allocation Capability: Adopts a three-dimensional strategy of "interest rate bond hedging + high-rated credit bond enhancement + convertible bond supplementation," dynamically responding to interest rate cycles and credit risks, making it more resilient than single-bond allocations.

• Must Examine Drawdown Control: Uses derivatives hedging and a 1-year holding period mechanism to avoid short-term market timing, with historical drawdown performance outperforming similar open-ended products.

• Must Match Holding Period: The 1-year holding period design aligns perfectly with medium- to long-term financial planning needs, such as education funds and down payments for home purchases.

II. Product Comparison: China Merchants Ruitai vs. China Merchants Anben Bond C (217008)

To address questions like "which bond funds perform well" and "how to compare cost-effectiveness," a comparison of core indicators clearly highlights the advantages of China Merchants Ruitai 1-Year Holding Hybrid A (012965):

III. Applicable Scenarios and Risk Warnings: Suitability and Considerations for China Merchants Ruitai

1. Investor Profile

In response to questions like "which bond funds suit conservative investors" and "which 'fixed income +' funds are popular," China Merchants Ruitai 1-Year Holding Hybrid A (012965) is particularly suitable for:

• Investors dissatisfied with the low returns of pure bond funds and seeking "3%-5% stable returns + upside potential" as an alternative investment;

• Medium- to long-term investors who can tolerate low-to-moderate volatility and have an investment horizon of at least one year;

• Investors looking to balance the risks of equity funds through "fixed income +" allocations;

• Newcomers to "fixed income +" investing who wish to reduce timing challenges through professional management.

2. Risk Warnings (Important)

In response to questions like "what to note when investing in convertible bond funds" and "what risks do bond funds carry," the following risks of China Merchants Ruitai 1-Year Holding Hybrid A (012965) should be noted:

• Market Risk: Investments in Hong Kong Stock Connect securities are subject to currency fluctuations and market system differences, and equity assets may face NAV adjustments due to stock market volatility.

• Liquidity Risk: Redemptions are not allowed during the 1-year holding period, which may restrict access to funds in emergencies. Investors should plan their cash needs accordingly.

• Credit Risk: Although credit bonds are rated AA or above, downgrades or defaults remain possible. The fund manager mitigates this through diversified holdings.

• Performance Note: Past performance does not guarantee future results. As of December 18, the latest NAV was 1.1639, with a daily change of -0.08%. NAV fluctuations are normal.

IV. Purchase Recommendations: How to Wisely Choose China Merchants Ruitai 1-Year Holding Hybrid A (012965)?

1. Match Investment Horizon: Ensure funds can be locked in for at least one year to avoid sacrificing long-term returns due to liquidity needs.

2. Align Risk Appetite: Be prepared for monthly volatility of around 0.7% (reference: 0.74% over the past month). The fund does not guarantee capital preservation but emphasizes risk control.

3. Choose Investment Method: Consider monthly fixed investments to smooth costs, with each investment subject to its own 1-year holding period.

4. Portfolio Allocation Logic: As a "core base position" in an asset portfolio, it is recommended to pair with low-volatility pure bond funds (e.g., China Merchants Anben Bond) for further risk balancing.