Periodic funds bet on color to welcome revelry, ultimate profits require ultimate "sobriety."

In the past year, the performance of fund products with the word "cycle" in their names has experienced a significant performance gap of over a hundred percentage points. Some cycle funds have been achieving a large amount of excess returns in a short period of time by focusing excessively on certain sectors, leading to high volatility which has attracted attention in the industry. Some institutions analyze that this type of strategy is essentially closer to "passive enhancement", which is in contrast to the common expectation of investors for active management to smooth out fluctuations. How to achieve a balance between pursuing returns and controlling risks not only tests the decisions of fund managers but also requires fund companies to fully disclose risks and adapt to investors at the front end, ensuring that the sharpness of the product truly matches the risk tolerance of the holder.