The awareness of investment and financial management has been strengthened, and the holding period of funds has been extended——

　　Enthusiasm for personal investment in public funds increased

　　Recently, the Asset Management Association of China released the "Investigation Report on the Status of Investors in the National Public Fund Market (2020)".

The report shows that individual investors are increasingly enthusiastic about investing in public funds, their investment concepts are more scientific, and their investment and transaction behaviors are also more rational.

　　Industry insiders pointed out that with the advancement of new asset management regulations and the net worth transformation of asset management products, the institutional advantages and long-term investment value of public funds have become prominent.

In the context of residents' increasing investment and wealth management needs and awareness, public funds will stably play the role of inclusive finance, and the value of serving public wealth management and the development of the real economy will be fully demonstrated.

　　In terms of individual investors, the report data shows that by the end of 2020, the total number of off-market investors was 671.029 million, of which the number of natural person investors was 669.710 million; the total number of on-site investors was 25.242 million, of which 25.157 million were natural person investors.

　　It is worth noting that the report pointed out that the main sources of funds for individual investors to invest in public funds are "transfer from deposits" and "new income", respectively, 76.3% and 74.5% of investors meet this option; "financial management from banks" "Product transfer in" and "transfer in from stock" were the second choices, with 37.6% and 35.8% of investors choosing respectively.

　　In terms of investment varieties of public funds, the report shows that 74.1% of individual investors choose stock funds as the main investment varieties, 54.8% choose hybrid funds, and stock and hybrid funds are more prominent.

The selection ratios of other bond funds (excluding index funds), index funds (excluding ETFs) and money market funds were 43.9%, 40.6% and 22.9% respectively.

　　Regarding the reasons for the gradual popularity of equity public funds, Li Zhan, chief economist of the Research Department of China Merchants Fund, believes that, firstly, in recent years, the "new economy" has become an important driving force for economic growth, providing broad opportunities for the development of equity funds. Development space and many high-quality investment targets; Second, the reform and innovation of the capital market and various reform measures of the regulatory agencies have provided important support for promoting the development of the equity fund market.

The regulators have also repeatedly emphasized vigorously developing equity funds, expanding medium and long-term funding sources, promoting the balanced development of investment and financing, and promoting the great development of equity funds; third, the regulators continue to guide fund managers and other professional institutions to insist on returning to asset management Origin, strengthen professional capacity building, and promote the pilot implementation of fund investment advisory business to help investors obtain more professional investment choices.

　　The report also shows that, overall, individual investors who hold a single public fund for one to three years account for the largest proportion, at 34.9%.

The percentages of individual investors with an average holding period of 3 to 5 years and 5+ years were 11.5% and 9.6%, respectively.

Among them, the proportion of investors with more than 5 years increased from 7.7% in the previous year to 9.6%, which shows that the proportion of investors who have held for a longer time is slowly increasing.

　　Harvest Wealth believes that the lengthening of the investment period of fund investors may have the following reasons: First, the increasing proportion of institutional investors reduces the volatility of the stock market, which in turn reduces the volatility of funds and improves the holding experience of investors. It helps to prolong the holding period of investors; secondly, with the rapid development of the wealth management industry, especially the quality and quantity of investor education has been significantly improved, the overall professional quality of investment consultants has also improved rapidly, which also helps to help investment The third is that since 2019, the return of fund investment has increased significantly, which has enhanced investors' confidence in holding the fund for a long time; the fourth is the change in the product supply side.

Some fixed holding period funds appear one after another, and they are gradually recognized by investors, contributing to long-term investment from the product side.

　　On the institutional investor side, two conclusions are worth noting.

First, from the perspective of the evaluation cycle of public fund managers, the evaluation cycle within one year accounts for more than 60%.

Specifically, the top three assessment cycles are 1 year, 6 months and 3 years, accounting for 35.3%, 20.4% and 18.5% respectively.

The assessment cycles of more than 5 years, 2 years and 3 months accounted for 10.9%, 9.2% and 5.6% respectively.

　　Second, in terms of the evaluation and assessment cycle of the invested public funds, nearly 70% of the institutions did not exceed one year.

Specifically, the top three assessment cycles are 1 year, 6 months and 3 years, accounting for 38.0%, 19.7% and 16.3% respectively.

Assessment cycles of more than 5 years, 2 years and 3 months account for 9.5%, 8.8% and 7.8% respectively.

　　Harvest Wealth pointed out that some institutional investors have a relatively short investment period and pursue absolute returns within the year, which is the reason why some institutional investors have a short evaluation period for public funds.

Industry associations can issue guidelines for the assessment of public funds, suggesting that the performance assessment period for public funds should not be too short, and to standardize the performance rankings of public funds.

Fund companies may also set a more reasonable time limit for the assessment of their public funds and public fund managers.