A sincere and wholehearted approach is not just an attitude, but a demand for excellence.

"The 'anchor' I choose is a company's earnings—their earnings and earnings growth are the core, quantifiable metrics when investing."

Luan Chao, an expert in balanced growth investing, serves as the head of equity investment at Hua An Fund's Beijing office and as a fund manager.

01 Total Dedication: The Beneficiary Comes First

In Luan Chao's view, "wholehearted dedication" is both a single-minded, all-encompassing attitude and a demand to do one's best without regret. A public mutual fund operates on the principle of "entrusted by others, managing money on their behalf." He prioritizes the safety of his beneficiaries' capital, hones his investment research skills to perfection, and internalizes risk management as a daily discipline.

02 Balanced Offense and Defense: The Investment Art of a Diversifier

Luan Chao's investment philosophy is built on a deep understanding of "balance." In practice, he distills it into a three-pronged framework: "timing, trend-following, and stock selection."

Macro timing involves slow-moving variables used to assess the broad direction.

Sector trend-following focuses on more frequent industrial-level changes, identifying three to five leading industries through continuous monitoring.

Micro stock selection recognizes that the A-share market holds five to six thousand listed companies, each a unique entity requiring deep understanding of its culture, moats, technology, and competitive dynamics.

Strategically, he adheres to "growth plus new dividends"—"growth" means consistently increasing exposure to limited high-growth areas; "new dividends" involves looking ahead in a low-interest-rate environment for companies with potential to boost future dividends, not just current yields. When researching companies, he focuses on three dimensions: corporate governance, core competitiveness, and earnings delivery capability.

03 Cycles and Growth: Two Sides of the Same Coin?

Cycles and growth are often seen as opposing forces. But Luan Chao believes they are two stages of the same thing. "Over the long term, any growth industry eventually becomes cyclical; and cyclical stocks can also exhibit growth characteristics at specific stages." Viewing growth stock peaks through a cyclical lens fosters more caution and avoids the pitfalls of linear extrapolation—this is true "balance in offense and defense."

04 Increasing Market Volatility: How to Navigate Adversity and Find the "Constant"

So, what truly remains constant? Luan Chao's answer is clear and resolute: corporate earnings. Regardless of shifts in market style or changes in capital flows, as long as a company's fundamentals are improving and earnings are growing, there is no need for excessive anxiety. His advice to ordinary investors is: adjust your mindset, view volatility with a normal heart; reduce excessive focus on short-term fluctuations; and hold for the long term after thorough research. "Calm, deep, long-term—these are the three key words," he says.

05 Wise Companionship, Entrusting with Confidence

At the end of the conversation, Luan Chao sincerely thanked the beneficiaries for their trust and companionship, encouraging them: always maintain confidence—in the nation's development, in the long-term value of the A-share market, and in the professional capability of the chosen fund manager. Before selecting a product, he recommends fully understanding the fund manager's performance characteristics and investment style. The deeper the understanding, the better the holding experience and long-term returns are likely to be.