On the "5.15 National Investor Protection Publicity Day", the Asset Management Association of China (hereinafter referred to as the "Association") released the "Survey Report on the Investor Status of the National Public Fund Market (2022)" (hereinafter referred to as the "Report"). Through the portrait of the investment behavior of the people, the report presents the preferences and choices of individual investors in mainland China to invest in funds.
According to the survey data, active equity funds are more favored by individual investors, with more than 60% of investors holding for more than one year, and most investors have a positive attitude towards regular investment; When choosing a fund, the performance of the fund itself, the comprehensive strength of the fund company, the ranking of the fund manager and the investment ability become the primary considerations. More investors trust their own judgment when choosing when it comes to investing, but at the same time, about 60% of individual investors say they need an advisor.
In addition, in order to more effectively protect the legitimate rights and interests of investors, especially small and medium-sized investors, promote the high-quality development of the industry, and further boost investor confidence, the 2024 "5.15 National Investor Protection Publicity Day" and "National Publicity Month for Preventing Illegal Securities and Futures Funds" organized by the association officially kicked off, and the fund industry is taking action.
Active equity funds are preferred
From the perspective of investment varieties, among public funds, equity and hybrid funds have become the choice of more people.
According to the report, more than 60% of the surveyed individual investors (65.6%) chose ordinary equity funds (excluding index funds) as the main investment varieties of public funds, and 43.3% chose hybrid funds (partial stock hybrid funds).
The selection ratios of other bond funds (excluding index funds), passive or enhanced index funds (excluding ETFs), and hybrid (balanced hybrid) were 29.9%, 27.7%, and 22.9%, respectively.
Another 22.4%, 18.7%, and 13.4% of investors chose ETFs, money market funds, and hybrid (partial debt hybrids); The proportion of investors who choose FOF funds, QDII funds, and other types of funds is less than 10%.
From the perspective of the number of holdings, the number of investors holding public funds is generally an inverted triangle, and the more public funds held, the smaller the proportion of investors. According to the survey data, nearly half of investors (44.6%) said they held less than 5 funds, and 25.5% held "6-10" funds. Another 12.3%, 6.5% and 7.0% of investors chose to hold "11-15", "16-20" and "21 or more".
More than 60% of investors hold for more than one year
From the perspective of the average time of holding a single public fund, more than sixty percent of investors hold a single public fund for more than one year on average.
According to the survey data, overall, in 2022, individual investors with an average holding period of 1-3 years for a single public fund will account for the largest proportion, at 41.8%; The proportion of individual investors with an average holding time of 4-5 years and 6 years and above is 15.0% and 9.7%, respectively; The average holding time of individual investors for more than one year accounted for 66.5%.
Under the premise of long-term holding, regular investment has also become the choice of many people, and most of the individual investors surveyed have a positive attitude towards regular investment of funds.
According to the survey data, 64.5% of the respondents believe that regular investment in funds can "diversify investment risks and is an investment method that saves worry and effort". 16.9% of investors believe that fund investment is "no different from general fund investment, with the rise and fall of the market", and only 13.6% of investors have a negative attitude, believing that "fund investment is not as good as general fund investment, and it is better to choose by yourself".
Performance has become the first criterion for base selection
When choosing a fund, the people pay more attention to the performance of the fund itself.
According to the report, the main factors considered by the surveyed individual investors are the performance of the fund itself, the comprehensive strength of the fund company, the ranking of fund managers and the investment ability. The second is the stability of the product investment style, the fund investment strategy, the scale of the fund company, etc. In addition, factors such as convenience of purchase, fund rates, etc., will be considered.
In addition, from the perspective of their own needs, when investors invest in funds, pension reserves are the primary consideration of reserve needs.
The report shows that when investors invest in public funds, pension reserves are their primary consideration of reserve needs, accounting for 56.6%. This was followed by the demand for wealth management reserves, accounting for 55.9%. The need for education reserves and the need for emergency reserves were also mentioned, accounting for 33.4 per cent and 26.9 per cent, respectively.
About 60% of investors need advisory services
In the choice of investment timing, fund investors trust their own judgment more.
According to the report, when the surveyed individual investors invest in public funds, the investment behavior of others has little impact on their personal investment timing, with the proportions of "others strongly recommending" and "people around you are buying funds" being 20.6% and 9.0% respectively.
However, personal judgment and actual demand have a higher degree of influence on timing. Among them, "the market is falling, there is a chance to buy the bottom" is the preferred buying time, accounting for 43.0%; 39.0% said they wanted to keep their idle assets in value; 38.2% said they found that a fund was performing very well; The proportion of "the market is rising, optimistic about the market situation" is 35.0%.
However, trusting one's own judgment does not necessarily lead to good investment results, with about six out of ten individual investors surveyed saying they need advisory services.
According to the report, in terms of asset allocation services provided by fund investment consultants, 20.6% of investors said that they "need it very much", and 39.9% of investors believed that "providing investment advice" was sufficient, and the total of the above two types of investors reached 60.5%. In addition, 21.6% of investors said that "it doesn't matter, you can invest on your own", and 8.8% of investors "are interested but don't know yet". Only 9.1% of investors explicitly said they "don't need" advisory services.
Reviewer: Hou Zhihong Editor: Zhang Diange Proofreader: Zhang Lijing Producer: Zhang Nan
Issued by: Sun Hong