Asset Allocation Gains Traction: SEC Consults on Growing ETF and Mutual Fund Combinations
26 April 2025 路 Uncategorized 路
Source: 路 https://finance.technews.tw/2025/04/23/simultaneous-investment/
The Securities Investment Trust and Consulting Association released the '2024 Survey on Taiwanese Public's Behavior in Investing in Mutual Funds' today. This five-year study collected 1,438 valid questionnaires, examining investment behavior, fund preferences, dividend distribution concepts, and retirement planning, and comprehensively reveals the latest trends and changes in mutual fund and ETF investments among the Taiwanese public.
The survey indicates that the proportion of people who simultaneously invest in both ETFs and mutual funds increased from 30% last year to 35%, demonstrating a growing recognition of the importance of diversified asset allocation. The number of those investing solely in ETFs rose to 34%, likely due to their low cost, high liquidity, and risk diversification characteristics.
In contrast, the proportion of those who invest solely in mutual funds remains steady at 13%, suggesting a diminished market appeal for these products. Meanwhile, the percentage of individuals not investing in either mutual funds or ETFs dropped significantly from 27% in 2023 to 18% this year, reflecting an evident increase in overall investment participation.
Regarding investor preferences, 60% of respondents explicitly expressed a desire for stable dividends, indicating that conservative and steady investment strategies remain dominant. Thirty percent of investors are willing to pursue capital appreciation, while only 10% opt for higher risk to receive high dividends, suggesting that high-risk strategies remain less popular.
Further analysis revealed distinct differences in investment behaviors across various age groups: those aged between 30 and 50 exhibit the most proactive allocation practices, with a simultaneous ETF and mutual fund investment rate of 39%, while older generations tend to prefer traditional funds for their stability. Younger investors under 30 still have 23% who have not invested in any form.
Investment patterns show that 42% of respondents favor regular fixed-term investments, typically within the range of $5,000 to $20,000 per month, indicating a preference for small, steady investments. Additionally, awareness of automated investment plans and mother-child fund mechanisms is increasing among investors.
Regarding reasons for stopping regular investments, 42% of respondents cited financial constraints as the cause, while more than one-third stopped due to unsatisfactory performance or high market volatility, highlighting that financial pressure, loss of confidence, and performance expectations are the primary factors affecting sustained long-term investment.
Seventy percent of respondents have started preparing for retirement funds in 2024, indicating a steady rise in retirement awareness. However, the proportion of people who believe they should start planning before age 30 dropped significantly from 37% in 2021 to 22% this year.
Furthermore, policy support is crucial; 78% of respondents support incorporating investment tax deductions into TISA (Tax Incentive for Savings Account) schemes, and 75% believe that a unified platform integrating multiple investment products would enhance participation rates. The reluctance to participate in labor retirement self-selection investments decreased from 31% last year to 13%, indicating that financial education and user-friendly platforms are gradually reducing resistance towards such systems.
The research team proposes three recommendations for financial institutions and policymakers: enhancing young people's investment awareness and ETF education, providing advanced financial tools and trust-building measures for middle-aged individuals, integrating tax incentives in TISA schemes, and promoting personalized retirement accounts to improve overall retirement preparation resilience.
Overall, the survey reveals a growing maturity among Taiwanese investors in areas such as portfolio diversification, retirement savings, and digital operations. Future improvements should focus on designing tailored financial products for different age groups and experience levels, integrating education, product innovation, and policy tools to enhance financial resilience and asset allocation efficiency.
Ttl: Rising Awareness of Asset Allocation! Securities Investment Trust and Consulting Association: Increasing Simultaneous Investments in ETFs and Mutual Funds
The survey indicates that the proportion of people who simultaneously invest in both ETFs and mutual funds increased from 30% last year to 35%, demonstrating a growing recognition of the importance of diversified asset allocation. The number of those investing solely in ETFs rose to 34%, likely due to their low cost, high liquidity, and risk diversification characteristics.
In contrast, the proportion of those who invest solely in mutual funds remains steady at 13%, suggesting a diminished market appeal for these products. Meanwhile, the percentage of individuals not investing in either mutual funds or ETFs dropped significantly from 27% in 2023 to 18% this year, reflecting an evident increase in overall investment participation.
Regarding investor preferences, 60% of respondents explicitly expressed a desire for stable dividends, indicating that conservative and steady investment strategies remain dominant. Thirty percent of investors are willing to pursue capital appreciation, while only 10% opt for higher risk to receive high dividends, suggesting that high-risk strategies remain less popular.
Further analysis revealed distinct differences in investment behaviors across various age groups: those aged between 30 and 50 exhibit the most proactive allocation practices, with a simultaneous ETF and mutual fund investment rate of 39%, while older generations tend to prefer traditional funds for their stability. Younger investors under 30 still have 23% who have not invested in any form.
Investment patterns show that 42% of respondents favor regular fixed-term investments, typically within the range of $5,000 to $20,000 per month, indicating a preference for small, steady investments. Additionally, awareness of automated investment plans and mother-child fund mechanisms is increasing among investors.
Regarding reasons for stopping regular investments, 42% of respondents cited financial constraints as the cause, while more than one-third stopped due to unsatisfactory performance or high market volatility, highlighting that financial pressure, loss of confidence, and performance expectations are the primary factors affecting sustained long-term investment.
Seventy percent of respondents have started preparing for retirement funds in 2024, indicating a steady rise in retirement awareness. However, the proportion of people who believe they should start planning before age 30 dropped significantly from 37% in 2021 to 22% this year.
Furthermore, policy support is crucial; 78% of respondents support incorporating investment tax deductions into TISA (Tax Incentive for Savings Account) schemes, and 75% believe that a unified platform integrating multiple investment products would enhance participation rates. The reluctance to participate in labor retirement self-selection investments decreased from 31% last year to 13%, indicating that financial education and user-friendly platforms are gradually reducing resistance towards such systems.
The research team proposes three recommendations for financial institutions and policymakers: enhancing young people's investment awareness and ETF education, providing advanced financial tools and trust-building measures for middle-aged individuals, integrating tax incentives in TISA schemes, and promoting personalized retirement accounts to improve overall retirement preparation resilience.
Overall, the survey reveals a growing maturity among Taiwanese investors in areas such as portfolio diversification, retirement savings, and digital operations. Future improvements should focus on designing tailored financial products for different age groups and experience levels, integrating education, product innovation, and policy tools to enhance financial resilience and asset allocation efficiency.
Ttl: Rising Awareness of Asset Allocation! Securities Investment Trust and Consulting Association: Increasing Simultaneous Investments in ETFs and Mutual Funds