In 2021, fund products have become popular among young people, replacing fashion, relationships and celebrity gossip as the subject of their conversations. In fact, they got wide attention last year, when they increased by over 3 trillion yuan ($460.2 billion), reaching 18 trillion yuan ($2.8 trillion), a five-year high. 

Entering the new year, the market scale of the fund has continued to expand, as well as the number of investors. The first two months of 2021 saw domestic public funds add over 700 billion yuan ($107.4 billion), doubling from the same period last year.

The COVID-19 pandemic and shutdown measures to contain the disease plunged the global economy into a severe contraction. So people began to seek methods like investing in funds to avoid devaluing their assets.

In both the domestic stock market and the international capital market, most retail investors are at the low end of the food chain, and only a small number of them have been rewarded. That makes the products operated by experienced fund managers a practical choice.

However, the long-term investment strategy of fund managers means it will take a long time for people to see returns on their investment. But people generally think of short-term trade, adjusting their investment when the market fluctuates. This goes against the law of profit in terms of fund investment and puts greater pressure on the market.

This is an edited excerpt of an article originally published in Lifeweek on March 15 

(Print Edition Title: Fund Investment)