Industry insiders have observed that there are five major pain points in the fund investment advisory business in terms of resource investment, system construction, practitioners, investor education and operation methods, which restrict the further development of the industry.It is foreseeable that among many institutions, whoever takes the lead in breaking the shackles will stand out from the competition and enjoy the head dividend.
The public fund industry has ushered in a milestone moment: the number of fund products exceeded 10,000, and the total scale once again exceeded 26 trillion yuan, both hitting record highs.The arrival of the "Wanji" era not only marks a new height for the industry, but also opens up a trillion-yuan blue ocean for fund investment advisors.
Compared with the trillion-dollar investment advisory scale in overseas markets, my country's fund investment advisory business, which has just started in 2019, has huge potential.During the development of various institutions, industry insiders have observed that there are five major pain points in the fund investment advisory business in terms of resource investment, system construction, practitioners, investor education and operation methods, which restrict the further development of the industry.It is foreseeable that among many institutions, whoever takes the lead in breaking the shackles will stand out from the competition and enjoy the head dividend.
Entering the golden period of development
The arrival of the "Wanji" era marks that the fund industry has reached a new height, but for investors, it means that the difficulty of fund selection has greatly increased.With the increase in the number of funds, the pain points of investors continue to emerge: low trust in channels, difficult product selection, single service form, no long-term planning, and lack of customized services.Compared with the past, it is more and more difficult to achieve "choosing a foundation to end your life".Under this circumstance, the fund investment advisory business, which takes customer value as the core and aims to solve the pain point of "funds make money and the basic people do not make money", has more and more practical significance and has a broad space for future development.
Statistics show that the pilot fund investment advisory business started in October 2019. After more than 2 years of development, as of the end of June 2022, a total of 60 institutions have obtained pilot qualifications, of which 43 have opened businesses, divided into funds and funds. There are three types of companies, securities companies, and third-party investment advisory platforms.By the end of 2021, the pilot fund investment and advisory institutions had served about 3.67 million customers and serviced assets of about 98 billion yuan.
Compared with overseas mature markets, my country's fund investment advisory business is still in its infancy.By the end of 2021, the assets under management of the U.S. investment advisory industry reached US$128.4 trillion, with a total of US$117.4 trillion in fully entrusted assets, accounting for 91.5% of the total assets under management of investment advisory companies, and US$11.0 trillion in non-entrusted management assets, only accounting for 8.5%.At present, the scale of my country's public funds has reached 26 trillion yuan. If this is calculated, the scale of fund investment and advice that can be driven is more than one trillion yuan.
Prioritize understanding of investor needs
Although it is facing a blue ocean, with the advancement of the fund investment advisory business, some practical problems have surfaced, which has restricted the further development of the investment advisory business.
Ping An Securities Research Report believes that the current development of fund investment advisory business faces five major pain points: In terms of resource investment, it is difficult to balance revenue and expenditure in a short period of time, and follow-up development requires the patience and determination of the management of pilot institutions; At the stage of transformation from the model to the buy-side investment advisory business, the business logic has not yet been transformed, and the investment and advisory system has not yet been perfected. The systematic human resources training system has not yet been perfected; in terms of investment education, investor education is lagging behind, the concept of buy-side investment advisory has not been fully accepted by investors, and it will take some time for investment thinking and habits to change. Behavior still exists; in terms of operating models, scenario-based is an important indicator to measure the effectiveness of an investment portfolio, while pilot institutions generally lack multi-scenario construction based on landmark events in the customer life cycle.
To this end, Ping An Securities put forward three suggestions: First, the competition among pilot institutions in the future should focus on fund investment and research capabilities and major asset allocation capabilities, and the investment side needs to increase related capacity building.Second, the implementation of the buy-side investment advisory model lies not in the construction of strategies, but in the change of the "gu" end mode, which can explore a decentralized investment and advisory model.Third, make up for shortcomings and build a customer-centric buyer-side investment advisory system on the “gu” side.
Many leading institutions have already taken active action.Tao Ronghui, general manager of Harvest Wealth, said that Harvest Wealth has always put "understanding customer needs" in the most important position. Created a series of solutions, using fund products as tools to serve customer returns.In the process of the previous market falling sharply, Harvest Wealth kept calm and objective, and adopted various methods to reach customers, leading customers to make low-level layouts in high-quality fund products, making fixed investment to cover positions, and buying more and more as the market fell, which lowered the overall cost of holding positions. During the rebound process, customers have harvested good returns.
"Products are tools, and customer returns are the goal. No matter how rich a fund product is, no matter how high the accumulated net value is, if it does not meet the needs of customers and does not implement a real customer return experience, investors will eventually vote with their feet. Choose to leave." Tao Ronghui concluded.
In terms of model innovation, taking GF Fund as an example, the company launched the "Super Scheduled Investor" fund investment and fixed investment portfolio strategy at the end of 2021.This strategy breaks the traditional investment advisory portfolio model. According to market conditions, combined with the investment team's research and judgment on macro, fundamentals, valuation, etc., the investment amount and fund types are dynamically adjusted."Super Fixed Investor" adopts the frequency of biweekly fixed investment, dynamically adjusts the investment amount of each period, and strives to dilute investment costs and smooth market fluctuations through intelligent fixed investment methods, so as to help investors obtain better long-term returns.
