The average holding period of its “golden funds” by users has risen to around 400 days, 67% more than a year ago, according to a study by Alipay.
Ant Hangzhou Fund Sales Co, an online third-party fund sales platform, manages a select series of funds that it promotes as top investment choices that will produce good returns for its clients.
The platform had a total of 185 funds at the end of June, most of which were equity funds.
Equity funds invest primarily in equity and equity related securities, while debt funds invest in fixed income securities.
Thanks to its large number of young users, Ant Fund has discovered that nearly 48% of “golden fund” holders were born after the 1990s and half of its investors live in lower-tier cities.
On average, each investor holds two funds and invests around 10,000 yuan ($1,480) on the platform. According to the study, almost half of fund buyers have a wealth of experience in making investments.
Data from Ant Fund shows that users who hold the “golden funds” for more than three years will generate 53% higher income than those who hold less than three years.
“It’s good to see that individual investors stay invested for the long term. This will lead to a better fund investment experience and higher return after experiencing good and bad performance,” Terry said. Gao, investment adviser at China. Universal Asset Management.