Equity Class Investment Products Yield 31.72%! A-Share Market Fluctuates Around 3600 Points, Bank Equity Investment Again in Vogue

In the long run, under the background of asset scarcity, "fixed-income +" investment products are still a major driver of growth for the asset management industry, becoming an important launchpad for the expansion of financial institutions.

Recently, the Shanghai Composite Index has repeatedly fluctuated around 3600 points, with a closing price of 3593.66 on July 25, down 0.33%. As of now, most major stock indexes in the A-share market have rebounded significantly from their low point in April.

Against this backdrop, various equity class products are showing impressive gains. Wind data shows that as of July 24, there were 13 equity class investment products with a yield exceeding 10% issued by banks and other financial institutions. From the perspective of total return rate, two funds under the auspices of China Asset Management, namely "China Equity Index" and "Micro-Disclosure Low-Volatility Index", have yielded more than 30% since the beginning of this year.

However, current equity class investment products still belong to a niche market, with their scale contribution relatively small. Moreover, most of these products are categorized as R5 (high-risk) in terms of risk level. Some investors who prefer lower-risk investments may opt for "fixed-income +" products that combine stable income with the potential for growth.

In this regard, Wang Yikun, founder and CEO of Crown Sunshine Consulting, told Time Weekly that "fixed-income +" investment products require high-level research capabilities and risk control from financial institutions. On one hand, researchers need to conduct in-depth studies on macroeconomic trends, bond markets, and equity markets to accurately grasp the investment opportunities for various assets. On the other hand, they need to have excellent risk management skills.

Source: Tusheng Creative

Equity class investment products yield big gains, with the highest return rate reaching 31.72%

This year, equity class investment products have shown impressive returns. Wind data shows that as of July 24, there were 18 equity class investment products issued by banks and other financial institutions with a yield exceeding 10% since the beginning of this year.

The current bull run in the equity market is closely related to the performance of the Shanghai Composite Index. Since April 7, the index has surged from its low point of 3096.58 and is currently fluctuating around 3600 points, with a total return rate exceeding 16% over the past three months.

Moreover, there are also some equity class investment products that have generated impressive returns since the beginning of this year. According to Wind data, as of July 24, there were 13 equity class investment products with a yield exceeding 10%.

According to the second-quarter report published by China Asset Management, the fund's risk rating is R5, and its total assets under management stood at 423.93 million yuan as of June 30, up 224.78 million yuan from the previous quarter, representing a growth rate of 112.86%. The cash and bank deposits accounted for 20.64%, while equity class investments accounted for 79.36%.

It is worth noting that apart from these products, there are many other equity class investment products under the auspices of China Asset Management that have seen significant growth in their assets under management since the beginning of this year. As of June 30, the total assets under management for three funds stood at 401.22 million yuan, 319.53 million yuan, and 704.83 million yuan, respectively, representing growth rates of 75.04%, 50.14%, and 171.58%. Wind data shows that as of July 24, these three funds have yielded returns of 31.72%, 12.21%, and 4.10% since the beginning of this year.

In addition, some equity class investment products have held positions in certain popular market indicators during the second quarter, directly boosting their returns.

The "China Equity Index" fund, for example, has a 17.85% return over the past three months, with a 14.97% return over the past six months and a 12.40% return since the beginning of this year. According to the fund's half-year report, as of June 30, its top ten holdings included Maoyan Entertainment, which accounted for 5.11% of the total assets under management.

Investors tend towards "fixed-income +" products to enhance returns

Although equity class investment products have shown impressive returns, they still belong to a niche market and are not yet mainstream. According to the China Banking Association's quarterly report (first quarter), as of March 31, the total scale of bank investment products stood at 29.14 trillion yuan. From a structural perspective, fixed-income products accounted for 28.33 trillion yuan, hybrid products accounted for 0.72 trillion yuan, equity class products accounted for 0.08 trillion yuan, and commodity and financial derivatives accounted for 0.01 trillion yuan.

"Investors tend to favor stable products with a yield that is higher than the market average, so they will opt for 'fixed-income +' products that combine fixed income with potential growth," said an investor who shared his experience on social media platforms.

What are "fixed-income +" investment products? Specifically, "fixed-income +" is a type of investment strategy that combines fixed-income products and other types of assets to achieve the goal of enhancing returns while minimizing risk.

China Asset Management has recently published an article on its official WeChat account stating that for investors who are willing to accept certain market fluctuations, it is reasonable to take a more aggressive approach in the stock market and consider "fixed-income +" investment products with absolute returns as their target. Meanwhile, they need to select high-quality assets and participate in the markets cautiously.

According to Wind data, as of July 24, there were 85 "fixed-income +" investment products with a yield exceeding 4% since the beginning of this year. Another report by Xiangcai Securities estimates that the yield rate for these products has reached its highest level ever.

In response to a question from Time Weekly, Wang Yikun said that under the current monetary policy environment, interest rates are still in a downward trend, and fixed-income products as the foundation of "fixed-income +" investment products need to stabilize their yields. At the same time, asset managers need to have excellent risk management skills to minimize potential losses.

In this regard, Wang Yikun emphasized that financial institutions need to invest more energy in balancing product volatility and returns, optimizing their investment strategies and risk management systems to ensure that they can continue to grow steadily and healthily in the long run.