作者：梁信

The Power of Common Sense — Complete Implementation Specification

Based on Liang Xin (梁信), The Power of Common Sense (常识的力量) (2021)

Drawing on John Bogle's fundamental common sense (引用约翰·博格尔的基本常识), adapted for the Chinese capital market environment.

Overview
The Common Sense Philosophy
Index Investing in China
Asset Allocation Framework
Fund Selection Criteria
Regular Investment Strategy (定投)
Behavioral / Discipline Rules
Risk Management
Tax and Fee Optimization
Common Mistakes
Complete Portfolio Lifecycle Example
Key Quotes / Principles

1. Overview

Liang Xin's The Power of Common Sense is a book that transplants the core philosophy of John C. Bogle — founder of Vanguard and champion of low-cost index investing — into the specific realities of China's A-share market. The central thesis is deceptively simple: most investors would achieve better long-term outcomes by owning broadly diversified, low-cost index funds and holding them with discipline, rather than chasing active fund managers, hot sectors, or short-term trading profits.

Why This Book Matters for Chinese Investors

China's stock market is dominated by retail investors (~80% of daily turnover), which creates both higher volatility and greater opportunity for the disciplined, long-horizon investor.
The Chinese mutual fund industry has grown explosively, yet the average investor's actual returns lag the funds' stated returns — a behavioral gap caused by buying high and selling low.
Index fund products (ETFs, index mutual funds) are now widely available on Chinese exchanges, making Bogle-style investing fully implementable.
Real estate has traditionally dominated Chinese household wealth; the book argues for a gradual shift toward diversified financial asset allocation.

Core Claim

The single most reliable way for ordinary Chinese investors to build wealth over a 20-30 year horizon is to invest regularly in low-cost, broad-market index funds, maintain a rational asset allocation, and resist the urge to trade or chase performance.

2. The Common Sense Philosophy

2.1 Markets Are Efficient Enough

The aggregate return of all investors equals the market return, before costs.
After costs, the aggregate return of all investors must be less than the market return.
Therefore, the average actively managed yuan must underperform the average passively managed yuan, after fees — this is arithmetic, not ideology.
Chinese data confirms: over rolling 5-year and 10-year periods, the majority of active equity funds in China underperform their benchmark indexes after fees.

2.2 Costs Matter Enormously

Management fees for active equity funds in China typically range from 1.2% to 1.5% per year.
Index fund management fees range from 0.15% to 0.50% per year.
The difference of ~1% annually, compounded over 20 years, destroys a staggering portion of terminal wealth.
Additional costs: custodian fees (0.05%-0.25%), subscription/redemption fees (0%-1.5%), trading commissions embedded in turnover.

The Tyranny of Compounding Costs

Scenario	Annual Return	Annual Cost	Net Return	100K over 30 Years
Index fund	10%	0.3%	9.7%	~1,558K
Average active fund	10%	1.5%	8.5%	~1,152K
High-cost active fund	10%	2.5%	7.5%	~875K

A 1.2% annual cost difference over 30 years erodes roughly 25-35% of your terminal wealth. This is the tyranny of compounding costs.

2.3 Simplicity Beats Complexity

Complex strategies (sector rotation, factor timing, macro hedging) require being right twice — when to enter and when to exit.
Simplicity: own the whole market, keep costs low, rebalance annually.
Fewer decisions means fewer opportunities for behavioral error.

2.4 Time in Market Beats Timing the Market

Missing just the best 10 trading days over a 20-year period can cut total returns by more than half.
Those best days frequently cluster near the worst days — you cannot capture one while systematically avoiding the other.
China's A-share market is especially spiky: large single-day gains often follow panic selloffs, punishing those who exit during downturns.

2.5 Reversion to the Mean

Yesterday's top-performing fund is rarely tomorrow's leader.
Performance chasing (buying last year's winner) is statistically a losing strategy in China's fund market, just as it is in the US.
Funds with extreme outperformance often revert as their style or sector exposure cycles out of favor.

3. Index Investing in China

3.1 Available Index Funds

Major Broad-Market Indexes

Index	Code	Description	Use Case
CSI 300	000300	Top 300 stocks by market cap (Shanghai + Shenzhen)	Core large-cap allocation
CSI 500	000905	Stocks ranked 301-800 by market cap	Mid-cap complement to CSI 300
SSE 50	000016	Top 50 stocks on Shanghai exchange	Blue-chip / mega-cap exposure
ChiNext	399006	Growth/innovation board (Shenzhen)	Growth tilt, higher volatility
CSI 1000	000852	Stocks ranked 801-1800 by market cap	Small-cap exposure
CSI All-Share	000985	Broadest representation of A-shares	Total market proxy

Sector / Thematic Indexes (use sparingly)

CSI Consumer Staples, CSI Medicine, CSI Technology, CSI New Energy
The book cautions: sector indexes should be satellite holdings at most, never the core allocation.

3.2 ETF vs Mutual Fund Implementation

Feature	ETF (场内基金)	Index Mutual Fund (场外基金)
Trading venue	Exchange (via brokerage)	Fund company / third-party platform
Pricing	Real-time market price	End-of-day NAV
Minimum investment	~100-200 shares	Often 10 RMB or lower
Expense ratio	Generally lower (0.15-0.5%)	Slightly higher (0.4-0.6%)
DCA automation	Manual or broker auto-buy	Platform-supported auto-DCA
Liquidity	Depends on trading volume	Always redeemable at NAV
Dividend handling	Cash distribution	Often auto-reinvested

Recommendation: For DCA (定投) automation, index mutual funds via platforms like Tiantian Fund (天天基金) or Alipay (支付宝) are more convenient. For lump-sum or tactical allocations, ETFs offer lower costs and tighter spreads on major indexes.

3.3 Broad Market vs Sector Indexes

Core holding: CSI 300 or CSI 300 + CSI 500 combination covers ~80% of A-share market capitalization.
Sector indexes: Only for investors who genuinely understand the sector and accept concentrated risk. Most investors are better served by broad market exposure.
Smart beta / factor indexes: CSI Dividend, CSI Fundamental 100, etc. — these can be satellite holdings but add complexity. The book does not emphasize them.

3.4 Historical Returns of Chinese Indexes

CSI 300 annualized return since base date (Dec 31, 2004) through 2020: approximately 8-10% including dividends, with significant volatility.
Drawdowns of 50%+ have occurred (2008, 2015), followed by recoveries.
The key insight: long-term returns have been respectable for patient investors, but most retail investors earned far less due to poor timing.

3.5 How China's Market Differs from the US

Characteristic	China A-shares	US Market
Investor composition	~80% retail turnover	~80-90% institutional
Daily turnover rate	Very high	Moderate
Volatility	Higher	Lower
Short selling	Limited	Widely available
Derivatives	Limited (growing)	Deep and liquid
IPO mechanism	Approval-based	Registration-based
T+1 settlement	Yes (stocks)	T+2 (moving to T+1)
Price limits	+/-10% (main), +/-20% (ChiNext/STAR)	None (circuit breakers)

Implications for index investors: Higher volatility means DCA is especially powerful (buying more units when prices drop). The retail-dominated structure creates more frequent mispricings that mean-revert, benefiting patient holders.

4. Asset Allocation Framework

4.1 Stocks vs Bonds vs Cash

The book advocates a simple three-asset framework as the foundation:

Equities (via index funds): Growth engine of the portfolio.
Bonds (via bond index funds or money market funds): Stability anchor, provides rebalancing fuel during equity downturns.
Cash / Money Market: Liquidity reserve, not an investment.

4.2 Age-Based Guidelines Adapted for China

A starting rule of thumb, adjusted for Chinese retirement context (statutory retirement age 60 for men, 55 for women, gradually increasing):

Equity allocation (%) = 110 - Age      (aggressive)
Equity allocation (%) = 100 - Age      (moderate)
Equity allocation (%) =  90 - Age      (conservative)

Age Range	Moderate Equity %	Bond %	Notes
25-30	70-80%	20-30%	Long horizon, maximize growth
30-40	60-70%	30-40%	Peak earning years, stay aggressive
40-50	50-60%	40-50%	Begin gradual de-risking
50-60	40-50%	50-60%	Capital preservation increases
60+	30-40%	60-70%	Income focus, but maintain equity

China-specific adjustments:

If you own property (most Chinese households do), your overall wealth is already heavily tilted toward a single illiquid real asset. Financial portfolio should compensate by being more diversified across equities and bonds.
Social security (养老金) replaces some bond-like income in retirement; factor this into your allocation.

4.3 Risk Tolerance Assessment

The book provides a simple self-assessment:

If markets drop 30% tomorrow, would you: (a) buy more, (b) hold, (c) sell some, (d) sell all?
What is your investment horizon? Less than 3 years = mostly bonds. 3-10 years = balanced. 10+ years = equity-heavy.
How stable is your income? Volatile income (entrepreneur, commission-based) warrants more conservative allocation.
Do you have adequate insurance and emergency fund? If no, fix this first.

4.4 The Role of Real Estate

Most Chinese households have 60-70% of net worth in real estate.
The book does not argue against home ownership but warns against treating investment property as a diversified portfolio.
Financial assets (stocks, bonds, funds) provide liquidity, divisibility, and diversification that real estate cannot.
As the property market matures and price growth slows, shifting incremental savings toward financial assets becomes increasingly important.

4.5 International Diversification

QDII Funds (Qualified Domestic Institutional Investor)

Chinese investors can access Hong Kong (H-shares, Hang Seng Index), US (S&P 500, Nasdaq 100), and global markets via QDII funds.
Recommended allocation: 10-30% of equity portion in international indexes.
Benefits: currency diversification (RMB risk), access to sectors underrepresented in A-shares (global tech), lower correlation.
Caveats: QDII quotas can be limited, expense ratios are higher, and currency fluctuation adds a layer of volatility.

Hong Kong Stock Connect (沪港通/深港通)

Provides direct access to Hong Kong-listed shares through mainland brokerages.
ETFs tracking the Hang Seng Index or Hang Seng Tech Index can serve as a Hong Kong allocation sleeve.

5. Fund Selection Criteria

5.1 Expense Ratio as Primary Filter

For index funds tracking the same benchmark, always choose the lowest expense ratio, all else being equal.
Total cost = management fee + custodian fee + trading costs + subscription/ redemption fees.
Difference between cheapest and most expensive CSI 300 index fund can be 0.5% annually — this is the easiest alpha an investor can capture.

5.2 Tracking Error for Index Funds

Annualized tracking error should be below 2% for a well-run index fund, ideally below 1%.
Sources of tracking error: cash drag, sampling methodology, dividend timing, rebalancing costs.
Check the fund's annual report for tracking error disclosure.

5.3 Fund Size and Liquidity

Minimum fund size: 200 million RMB (avoid liquidation risk for small funds).
For ETFs: average daily trading volume should be sufficient to enter and exit without significant market impact. Major CSI 300 and CSI 500 ETFs are highly liquid.
Larger funds benefit from economies of scale but may face capacity issues in less liquid segments (small-cap indexes).

5.4 Manager Tenure (for Active Funds)

If you choose to hold a small active fund allocation, require a minimum of 3-5 years of tenure for the lead manager.
Performance track record should span at least one full bull-bear cycle.
Be aware that past performance, even over long periods, does not guarantee future results.

5.5 Avoiding "Star Fund Manager" Chasing

The Chinese fund industry heavily markets star managers (明星基金经理).
Capital floods into top-performing funds after strong years, precisely when future returns are likely to be lower.
The fund company benefits from AUM growth; the investor bears the reversion-to-mean risk.
Rule: Never buy a fund solely because of recent performance or media hype about its manager.

6. Regular Investment Strategy (定投)

6.1 Dollar-Cost Averaging (DCA) Implementation

DCA (定期定额投资) is the book's most strongly recommended strategy for the majority of investors:

Principle: Invest a fixed amount at regular intervals regardless of market level.
Effect: Automatically buys more units when prices are low, fewer when prices are high, resulting in a lower average cost than the average price over the period.
Psychological benefit: Removes the agonizing decision of "when to buy" and replaces it with a systematic process.

6.2 Fixed Schedule vs Value Averaging

Fixed DCA (定期定额)

Invest the same RMB amount every period (weekly, biweekly, or monthly).
Simplest to implement and automate.
Recommended for most investors.

Value Averaging (价值平均)

Target a fixed growth in portfolio value each period.
Invest more when portfolio is below target, less (or sell) when above.
Slightly higher theoretical returns than fixed DCA but more complex and requires larger cash reserves.
Suitable for disciplined investors who want marginal optimization.

Enhanced DCA (智能定投)

Some Chinese fund platforms offer "smart DCA" that increases investment amounts when a valuation indicator (e.g., PE ratio of CSI 300) is below historical median, and decreases when above.
The book supports this as a reasonable enhancement but cautions against over-optimization.

6.3 Which Indexes to DCA Into

Recommended core DCA targets:

CSI 300 Index Fund — the single most important holding.
CSI 500 Index Fund — mid-cap complement for broader coverage.
Optionally: an international index (S&P 500 or MSCI World via QDII).

Suggested split for a two-fund DCA:

60% CSI 300, 40% CSI 500 (captures ~80% of A-share market cap).

Suggested split for a three-fund DCA:

50% CSI 300, 30% CSI 500, 20% S&P 500 / international.

6.4 When to Increase or Decrease DCA Amounts

Increase DCA when: you receive a salary raise, a bonus, or when market valuations are historically low (PE below 25th percentile of historical range).
Decrease DCA (but never stop) when: you face temporary cash flow pressure. Reducing the amount is far better than stopping entirely.
Never stop DCA during bear markets — this is precisely when DCA provides the greatest benefit by accumulating cheap units.

6.5 Behavioral Benefits of Automated Investing

Automation eliminates the need for willpower at each investment decision point.
Set up auto-debit from salary account to fund platform on a fixed date each month.
Treat the DCA contribution as a non-negotiable expense, like rent or utilities.
Review only quarterly or annually — do not check daily prices.

7. Behavioral / Discipline Rules

7.1 Don't Chase Hot Funds

When a theme is on every financial media headline (e.g., "liquor stocks," "new energy"), the easy money has already been made.
Buying sector funds after a run-up is performance chasing disguised as thematic investing.
Stick to broad-market index funds that capture all sectors proportionally.

7.2 Don't Panic Sell During Corrections

A 20-30% drawdown in A-shares is not an anomaly; it is a recurring feature.
Selling during a drawdown locks in losses and forfeits the recovery.
Historical data: every major A-share drawdown (2008, 2011, 2015, 2018) was followed by a recovery that rewarded those who stayed invested.
Actionable rule: If you feel the urge to sell during a drop, wait 30 days. If you still want to sell after 30 days of reflection, rebalance rather than liquidate.

7.3 Ignore Short-Term Market Noise

Daily market commentary, analyst predictions, and "expert" forecasts have near-zero predictive value.
Reduce information consumption: check your portfolio monthly at most.
Unsubscribe from trading signal services, stock-tip WeChat groups, and sensationalist financial media.

7.4 Annual Rebalancing Discipline

Once per year (pick a fixed date, e.g., your birthday or January 1st), review your allocation.
If any asset class has drifted more than 5 percentage points from target, rebalance by selling the overweight and buying the underweight.
Rebalancing enforces "buy low, sell high" mechanically.
Do not rebalance more frequently than annually — transaction costs and taxes erode the benefit.

7.5 The "Stay the Course" Mentality

Bogle's most famous advice: "Stay the course."
In Chinese market context, this is especially difficult because volatility is higher, social pressure from friends' trading stories is intense, and media cycles between euphoria and despair rapidly.
The investor who contributes steadily via DCA for 20+ years, rebalances annually, and ignores noise will almost certainly outperform the vast majority of active traders.

8. Risk Management

8.1 Emergency Fund Before Investing

Maintain 3-6 months of living expenses in a liquid money market fund or bank deposit before committing any money to equity index funds.
This prevents the forced liquidation of investments during personal financial emergencies (job loss, medical expense, unexpected cost).
Yu'e Bao (余额宝) or similar money market products are suitable vehicles.

8.2 Insurance Before Investing

Adequate insurance (medical, critical illness, term life, accident) must be in place before aggressive investing.
A single uninsured medical event can wipe out years of investment gains.
Insurance is risk elimination; investing is risk-taking for return. The former must precede the latter.

8.3 Leverage Avoidance

Never use margin (融资融券) for index fund investing. Leverage transforms a temporary drawdown into a permanent loss if a margin call forces liquidation at the bottom.
The 2015 A-share crash was amplified by leveraged retail investors who were wiped out during the forced deleveraging.
Bogle's principle: invest only money you can afford to have decline 50% without needing to sell.

8.4 Concentration Risk in Single Stocks

Individual stock risk is uncompensated — the market does not reward you for bearing risk that could be diversified away.
A single stock can go to zero; a broad index essentially cannot.
If you want to own individual stocks, limit the allocation to no more than 10% of your total investment portfolio ("play money" allocation).

8.5 Sequence-of-Returns Risk

Investors nearing retirement face the risk that a large drawdown early in retirement depletes the portfolio before it can recover.
Mitigation: gradually shift to a more conservative allocation (more bonds, less equity) as retirement approaches.
Maintain 2-3 years of living expenses in bonds/cash to avoid selling equities during a downturn in early retirement.

9. Tax and Fee Optimization

9.1 Fee Comparison Across Fund Types

Fee Type	Index Fund (ETF)	Index Mutual Fund	Active Equity Fund
Management fee (annual)	0.15-0.50%	0.40-0.60%	1.20-1.50%
Custodian fee (annual)	0.05-0.10%	0.05-0.15%	0.15-0.25%
Subscription fee	Brokerage comm.	0-0.15% (C-class)	0.10-1.50%
Redemption fee	Brokerage comm.	0-0.50%	0-1.50%
Total annual drag	~0.20-0.60%	~0.50-0.80%	~1.50-2.50%

9.2 Subscription Fee Optimization

A-class shares (A类): Front-load subscription fee (0.1-1.5%), lower annual fees. Better for long-term holding (> 2 years).
C-class shares (C类): No subscription fee, slightly higher annual service fee (~0.40%). Better for short-term holding (< 2 years).
For DCA investors with a long horizon, A-class shares with discounted subscription fees (many platforms offer 0.1%) are typically cheaper.

9.3 Tax Implications in China

Capital gains tax on fund investments: Currently exempt for individual investors in China (no capital gains tax on mutual fund/ETF profits for individuals as of 2021).
Dividend tax: Dividends from equity funds may be subject to withholding tax depending on holding period. Funds that reinvest dividends automatically defer this.
Stamp duty on ETF trades: 0.1% on the sell side for exchange-traded securities. Not applicable to mutual fund redemptions.
The favorable tax treatment of fund investing (vs direct stock trading) is an additional argument for the index fund approach.

9.4 Account Type Selection

Standard brokerage account: For ETF purchases. Choose a broker with low commission rates (ideally 0.025% or lower, minimum 5 RMB).
Third-party fund platform: For mutual fund DCA. Tiantian Fund, Alipay, WeChat Licaitong offer wide selection and fee discounts.
Tax-advantaged accounts: Individual pension accounts (个人养老金账户), introduced in 2022, allow tax-deferred investing in designated funds. When available and applicable, prioritize contributions here.

10. Common Mistakes

10.1 Buying High, Selling Low (追涨杀跌)

The most prevalent and costly mistake. Chinese retail investors systematically buy after rallies and sell during drawdowns, earning far less than the funds they invest in.

10.2 Frequent Trading

High turnover generates transaction costs and taxes that compound against you.
Studies show that the most active traders in China's A-share market earn the lowest returns.

10.3 Overconcentration in a Single Sector or Theme

Putting all your DCA money into "new energy" or "semiconductors" because they are popular is speculation, not investing.
Broad-market indexes inherently adjust sector weights over time.

10.4 Ignoring Fees

Choosing a fund with a 1.5% management fee over one with a 0.5% fee tracking the same index is a guaranteed 1% annual drag with no offsetting benefit.

10.5 Stopping DCA During Bear Markets

The exact time when DCA is most beneficial (buying cheap units) is when investors feel the most pain and want to stop.
This is the behavioral trap the entire DCA framework is designed to overcome.

10.6 Checking Prices Daily

Frequent monitoring increases the probability of panic-driven decisions.
Set a quarterly review cadence and resist the temptation to check between reviews.

10.7 Listening to "Experts" and Market Predictions

No one can consistently predict short-term market direction.
Acting on predictions leads to whipsaw losses and missed recoveries.

10.8 Treating Investing as Entertainment

Investing should be boring. If it is exciting, you are probably doing something wrong.
Entertainment belongs elsewhere; your retirement portfolio is not a casino.

11. Complete Portfolio Lifecycle Example

Profile: Zhang Wei, Age 30, Chinese Urban Professional

Starting conditions (age 30):

Monthly salary: 15,000 RMB after tax
Existing savings: 100,000 RMB
Owns apartment (mortgage: 5,000 RMB/month)
Emergency fund: 50,000 RMB (4 months expenses, targeting 6 months)
Insurance: medical + critical illness + term life in place
Risk tolerance: moderate-aggressive (long horizon, stable job)

Phase 1: Foundation (Age 30-32)

Build emergency fund to 75,000 RMB (6 months) — 6 months of saving.
Begin DCA with 3,000 RMB/month:
- CSI 300 Index Fund: 1,800 RMB/month (60%)
- CSI 500 Index Fund: 900 RMB/month (30%)
- S&P 500 QDII Fund: 300 RMB/month (10%)
Invest initial lump sum of 50,000 RMB:
- 35,000 RMB into CSI 300 Index Fund
- 15,000 RMB into a short-to-medium bond fund
Target allocation: 70% equity / 30% bonds.

Phase 2: Accumulation (Age 32-45)

Increase DCA with each salary raise (aim to invest 20-30% of after-tax income).
By age 35, monthly DCA: 5,000 RMB/month.
By age 40, monthly DCA: 7,000 RMB/month.
Annual rebalancing every January 1st:
- If equity allocation exceeds 75%, sell equity funds and buy bond funds.
- If equity allocation drops below 65%, sell bond funds and buy equity funds.
Estimated portfolio at age 45 (assuming 8% average net equity return, 3% bond return): approximately 1,500,000-2,000,000 RMB.

Phase 3: Pre-Retirement De-Risking (Age 45-60)

Gradually reduce equity allocation: target 50% equity / 50% bonds by age 55.
Continue DCA but shift new contributions more toward bonds.
At age 55: 40% equity / 60% bonds.
Build a 2-3 year cash/short-bond buffer for early retirement spending.
Estimated portfolio at age 60 (assuming continued contributions and moderate returns): approximately 4,000,000-6,000,000 RMB.

Phase 4: Retirement (Age 60+)

Allocation: 30% equity / 70% bonds and cash.
Withdraw 3-4% annually (adjusted for inflation) for living expenses.
Draw from bonds/cash first during equity downturns; replenish from equity gains during up markets.
Continue annual rebalancing.
Portfolio should sustain 25-30 years of withdrawals with high probability.

13. Key Quotes / Principles

From Bogle (via Liang Xin's Translation and Commentary)

"Don't look for the needle in the haystack. Just buy the haystack." Own the entire market through an index fund rather than trying to pick individual winners.
"The stock market is a giant distraction to the business of investing." Daily price movements are noise. The signal is long-term earnings growth and dividends.
"Time is your friend; impulse is your enemy." Compound returns reward patience. Impulsive trading destroys wealth.
"In investing, you get what you don't pay for." Every yuan saved in fees is a yuan that compounds for you, not for the fund company.
"The greatest enemy of a good plan is the dream of a perfect plan." A simple portfolio executed with discipline beats an optimal portfolio that exists only on paper.

Liang Xin's Adaptations for China

"The Chinese market rewards the patient even more than the American market, because retail-driven volatility creates deeper valleys for the DCA investor to exploit."
"Your neighbor's stock tip is not a strategy. An index fund and a 20-year commitment is a strategy."
"Common sense is not common practice. The gap between knowing and doing is where most investors lose their wealth."
"The best time to start DCA was ten years ago. The second best time is today."
"A fund manager who beats the index for three years is called a star. A fund manager who beats the index for twenty years barely exists."

The Ten Commandments of Common Sense Investing (Synthesized)

1.  Own the market — buy broad index funds.
2.  Minimize costs — every basis point matters.
3.  Automate your savings — set up DCA and forget it.
4.  Diversify across asset classes — stocks, bonds, international.
5.  Rebalance annually — buy low, sell high mechanically.
6.  Ignore predictions — no one knows where the market goes next.
7.  Stay the course — do not sell during downturns.
8.  Protect the foundation — emergency fund and insurance first.
9.  Never use leverage — borrowed money amplifies ruin.
10. Keep it simple — complexity is the enemy of execution.

Summary of Implementation Priorities

For the reader who wants a single-page action plan:

Priority	Action	Timeline
1	Build 6-month emergency fund	Months 1-6
2	Secure adequate insurance	Month 1
3	Open fund account (platform + broker)	Month 1
4	Select CSI 300 + CSI 500 index funds	Month 1
5	Set up monthly auto-DCA	Month 2
6	Invest any lump sum per target alloc	Month 2
7	Set annual rebalancing calendar date	Month 2
8	Add international index fund (QDII)	Month 3-6
9	Increase DCA with every salary raise	Ongoing
10	Review and rebalance once per year	Annually

The power of common sense is not in knowing these principles — most investors already know them. It is in having the discipline to follow them consistently over a lifetime of market noise, social pressure, and emotional temptation.

End of implementation specification.