2024 Young Investor Trends: Bond Fund Winners, Living off Interest, and Stock Market Sees New Momentum
In recent days, Xiaohongshu (Little Red Book) has joined forces with Ant Fortune to release the "Top 10 Investment Trends for Young People in 2024," highlighting the phenomenon of "living off interest" and the stock market seeing new momentum.
In 2024, as interest rates continued to fall and gold prices fluctuated, young people who had previously been saving up for a rainy day began to shift their focus towards bond funds, money market funds, and other stable investment products. Buying bonds and earning passive income became the new trend.
According to data from the Fund Industry Association, from January to October, bond and money market fund assets grew by RMB 27 trillion, accounting for 69% of the overall growth in publicly offered funds.
On the other hand, since September, the Shanghai Stock Exchange has seen a significant rebound, with "stock market sees new momentum" becoming a hot topic. This has also driven investment into equity funds, with eight out of ten investors opting for index funds that are more diversified.
Seeking stability first and then returns
Bond fund winners
In 2024, young people's investment mantra has changed from "Have we made a profit?" to "Are we earning passive income?" As the stock market fluctuates and interest rates fall, young people are gradually saying goodbye to all-in star stocks and finding that bond funds are their new favorite.
China Securities Investors Association data shows that bond fund assets have grown rapidly since the beginning of the year, from approximately RMB 5.3 trillion in January to around RMB 7 trillion by July.
Around National Day, there was a significant increase in A-share prices, with new investors entering the market and the topic of "stock market sees new momentum" becoming hot on Xiaohongshu. Statistics show that in October, the Shanghai Stock Exchange saw an influx of 6.85 million new accounts, four times higher than the average monthly growth rate.
Fund discussions
Unlike the "buy-low, sell-high" mentality of the past, young people seem to be leaning more towards seeking stability first and then returns. More people are looking at long-term investment values.
Side hustles
Challenging the goal of saving enough for retirement
One side hustle is to invest in bond funds and earn passive income, while another side hustle is to make money through online freelance work. The ultimate goal is to save enough for retirement.
As of now, the topic of "savings" has gained immense popularity on Xiaohongshu, with over 83 billion views and over 2.5 billion likes, comments, and collections.
Thirteen years ago, three-year-old Zhan worked as a freelancer while still in school to earn money for his education. He then went on to start his own media business and digital e-commerce venture, eventually accumulating a savings of nearly RMB 500,000.
Ren Ren, who is 27 years old, has implemented the "4% rule." The 4% rule refers to the idea that one should live off the interest on their investments. For example, if someone wants to retire with a monthly income of RMB 3,000, they would need to save around RMB 90 million.
Ren Ren sets aside his savings targets each year and prioritizes saving over spending. He has also started his own media side hustle, which generates enough income to cover his daily expenses, allowing him to continue saving.
More young people are trying to achieve "partial retirement"
Behind this trend is a shift in young people's investment philosophy and consumption habits. According to the "2024 Young Consumer Trends Report," young people are increasingly adopting a more rational approach to investing.