How to make investors "hold" products Financial institutions upgrade their holding experience "How effective丨Investment Education 121"

 21st Century Business Herald reporter Chen Zhi reports from Shanghai

Compared with making investment decisions on wealth management products, how to allow investors to hold products stably for a longer period of time to achieve expected returns has become a new challenge for financial institutions.

According to the data released by the "Annual Report of China's Securities Investment Fund Industry", from 2019 to 2020, more than 40% of stock funds have made more than 50% of their profits and all of them have made profits, but about half of them have not realized profits, and 30% of them have lost more than 100%. 20%. In 2012, more than 70% of stock funds achieved positive returns, but the proportion of Christians who lost more than 20% still reached 1/4.

Behind this is that many Christians generally buy the wrong product (buy the right product according to their actual wealth management needs), mismatch of fund period (short-term money long-term investment), chasing ups and downs and other wrong investment behaviors. In particular, the irrational short-term trading behavior of chasing ups and downs is often one of the main reasons why investors do not make money.

Yuan Yulai, the founder and CEO of Money Cube, told reporters that through the analysis of the fund investment behavior of more than one million registered users of the platform, he found some interesting phenomena. In the case of the same risk tolerance, women are more likely to make money than men. The reason is that there are relatively few wrong investment behaviors of Christians and women in third- and fourth-tier cities.

"The deep-seated reasons are more complicated. For example, the basic citizens in the third- and fourth-tier cities have relatively little financial knowledge, but they are more willing to believe in the long-term investment philosophy proposed by professional institutions, and it is unlikely that there will be chasing ups and downs. In addition, many women's emotional control It is relatively good, and there is less chance of emotional frequent redemption operations, etc., and it may also be because men prefer to make decisions independently. But this shows that when there are fewer wrong investment behaviors, the chances of making money for Christians are higher.” Yuan Yulai said bluntly,

It is worth noting that the above-mentioned erroneous investment behaviors that happened to Christians also happen to high-net-worth individuals.

Zhao Fan, head of the private wealth department of Kaiyuan Securities, revealed to reporters that whether high-net-worth clients can "hold" the product and obtain long-term investment returns depends largely on the product's holding experience and whether the product's income meets expectations.

"I went to Xiamen on a business trip from March to April last year, and I accompanied the financial manager to meet high-net-worth clients every day. At that time, quantitative investment private equity products and stock long-term funds were in the stage of rapid decline in net worth, so some high-net-worth clients seemed particularly anxious, and a lot of problems occurred. Irrational redemption behavior, the sentiment of killing and falling is relatively large." He pointed out. At that time, his coping strategy was to conduct in-depth communication with high-net-worth clients one by one to solve various doubts of high-net-worth clients, including whether private equity fund managers made market judgment mistakes, and whether changes in the manager’s investment risk caused a sharp retracement of the product’s net value. The rapid retracement of the net value of certain products is due to market factors or human factors.

"Through communication, I found that the best way to avoid high-net-worth investors' short-term wrong investment behavior of chasing ups and downs is to communicate with them continuously and clearly inform them of the reasons for the decline in the net value of the product and the certainty of the future income of the product. In fact, after learning these answers, many high-net-worth investors are willing to hold for a long time, waiting for private equity products to realize the investment returns corresponding to their investment strategies." Zhao Fan revealed to reporters. During this period, he also found that patient communication alone is not enough to make high-net-worth investors stick to long-term holdings. If high-net-worth investors are firmly optimistic about the private equity products or related investment strategies they invest in, he may wish to suggest him to adopt a fixed investment strategy-hunting Fixed investment can effectively dilute the investment cost, and finally get a better product holding experience when the stock market improves, so that they can feel the investment dividend of long-term holding.

He bluntly said that this experience has also given him a lot of inspiration - because he found that when the financial market fluctuates violently, many account managers are more nervous than high-net-worth customers - when high-net-worth customers ask financial managers about the rapid decline in net value of products The reason is that the nervousness of some financial managers who have not experienced the switch between bulls and bears may prompt high-net-worth investors to make short-term wrong investment decisions such as chasing ups and downs, causing them to fail to "hold" the product and wait to anticipate return.

“Therefore, in order for investors to hold on to the product to obtain long-term investment returns, on the one hand, it is necessary for high-net-worth investors to have a clear enough understanding of the short-term market fluctuations and the certainty of long-term product returns, so as to alleviate the anxiety caused by market fluctuations. Emotions can improve the product holding experience. On the other hand, financial managers should lead by example. Their calm attitude towards market fluctuations and accurate insight into the certainty of product returns will largely give investors confidence and make them dare to hold on products, dare to firmly believe in the rich returns brought by long-term investment.” Zhao Fan believes.

The reporter learned that in order to allow investors to "hold" products and insist on long-term holding investment, more and more financial institutions are placing their hopes on AI technology.

Specifically, these financial institutions believe that AI will help investors correct wrong investment behaviors in four major aspects, namely, accurately understanding the cognitive level of financial investment and real wealth management needs of Christians, and gaining insight into whether he exists through feedback from Christian behaviors. Wrong investment behavior; give professional fund investment portfolio suggestions based on the personal situation of Jimin; provide timely adjustment suggestions according to financial market changes to ensure that the fund investment portfolio can meet personal risk tolerance and return expectations; give timely investment suggestions through data feedback , to minimize the probability of the wrong investment behavior of Christians.

However, in the actual operation, there are still many challenges to whether AI can help investors hold the product.

A customer director of a third-party wealth management agency revealed to reporters that there was an interesting joke in the industry before. If an investor asks AI, he wants to invest in a company with a stable annualized rate of return of 10% but a volatility of net worth of no more than 1%. For wealth management products, AI will most likely reply that "there is no such product". But behind this question is that financial institutions cannot completely rely on AI to give "answers that satisfy investors", but must take the initiative to help investors establish reasonable income expectations and risk expectations, and then assist investors to make possible decisions. It is against human nature, but it is the correct investment behavior.

Zhao Fan believes that this invisibly tests the asset allocation capabilities of financial institutions, that is, how to provide diversified and diversified investment portfolio recommendations based on investors' true risk tolerance and return expectations. Only when investors have a better holding experience of wealth management products (more stable net worth fluctuations and more substantial returns), they will have more confidence in "holding" the products. Behind this, it also reflects that the way of selling a single product is no longer feasible-it is difficult for customers to "hold" the product during the long period of financial market fluctuations. Instead, it is a customized product portfolio that integrates different product types and investment strategies , It will allow investors to "hold" and "hold tight" for a longer period of time.

The reporter learned that compared with some financial institutions that focus on attracting investors to hold long-term profits through asset allocation, investment portfolios, and persuasion, more and more private equity institutions are more inclined to use product terms to "constrain" investors' trading behavior and reduce their chasing. Probability of short-term wrong investment behaviors such as ups and downs.

A person in charge of a tens of billions of private equity funds told reporters that in the new product fundraising roadshow, they will clearly inform potential high-net-worth investors that, first, the net value of the product will withdraw by more than 20% due to market fluctuations. Investors cannot bear this risk, so it is best not to invest; second, investors have to hold positions for 2-3 years before they can wait until the investment strategy has a good harvest. Recognize their investment philosophy. If you have concerns about investment strategies, it is best not to invest. The main purpose of this move is to inoculate them well - the A-share market may still fluctuate violently in the future, and the journey for investors to obtain high investment returns will not be smooth, and they must do a good job of long-term holding investment + endure large fluctuations in product net value test.

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