Recently, an interesting phenomenon has emerged: the market has experienced over ten consecutive days of gains, yet the subscription volume for fixed income+ products has actually increased. Many people are moving money from equity funds into fixed income+ products. Why is that? In fact, many people treat fixed income+ as a low-risk product.

Here, we need to clarify some perceptions. Fixed income+ is indeed a medium-high volatility fixed income product. When the stock market declines, it will also fluctuate, just with a smaller amplitude. Looking at the data from the past year: the maximum drawdown of the CSI 300 is around -10%, while the drawdown of fixed income+ is about -2%. Although the decline is smaller, the advantage is that the foundation is stable, making it relatively easier to reach new highs.

So, should you switch? My view is that there’s no need to be bearish on the market right now. If you sell all your equity holdings and switch to bonds now, you might regret it when the stock market surges again after some time. But buying fixed income+ to adjust your allocation makes sense: even if there’s a stock market crash later, it won’t hurt the core, and if the market continues to rise, you can still share some of the gains.

The key is to listen to yourself. When you want to reduce your position, do whatever makes you comfortable—don’t let yourself lose sleep every day. For investors with heavier positions, appropriately reducing risk exposure is often a necessary choice. Simply put, the reason for redemption operations is fundamentally a mismatch in risk tolerance. As long as you align your position size with your risk capacity, your portfolio structure will match your mindset, and that’s the most prudent state.