A survey of fund investors in Hong Kong and mainland China revealed ideas on how investment purchases could be sped up, although most respondents said they are satisfied with this process.

A survey of Hong Kong and mainland China investors conducted last October found that the majority of them are quite or very satisfied with the speed and ease of recent fund purchases. In the case of Hong Kong, however, a significant share are not so happy, it said. 

Some 55 per cent of fund investors in Hong Kong and 86 per cent of those in the mainland said they were “very” or “quite” satisfied, according to the survey, which was commissioned by the Hong Kong Investment Funds Association. The findings suggest a significant chunk of Hong Kong investors are not satisfied. The report did not specify exactly what this satisfaction related to, although one finding suggested that the speed and ease of fund purchases is a key test. Out of the 760 Hong Kong investors who responded to the survey, 56 said there are unnecessary steps in the fund purchase process.  

There are two parts to the survey: qualitative and quantitative. For the questionnaire survey, Cimigo interviewed more than 950 investors from Hong Kong and the Chinese mainland. The quantitative survey was preceded by five focus group discussions. Respondents include those who are investing/have experience in retail fund investment in the past 12 months and take part in investment decisions on their own or with references from a bank’s investment advisors/independent financial advisor. Those who invest in funds only via MPF/unit-linked insurance products are excluded.

As to how to streamline the process, 52 per cent of those in Hong Kong who said there are unnecessary steps in the fund purchase process think audio recording of the risk assessment process can be dispensed with. Some 47 per cent think the risk profile assessment can be removed altogether.

Among other details, 54 per cent of mainland investors believe some steps can be removed, with most viewing audio recording of the risk profile assessment as redundant. 

The survey showed that younger generations (X and Y) from the Hong Kong and mainland markets are particularly keen to have a faster fund purchase process.

While respondents generally acknowledge the value of the risk profile assessment, 56 per cent of Hong Kong respondents believe that they should have the right/freedom to override the result of the assessment and invest in mismatched products if they explicitly state to the investment advisors that they can and are willing to accept the risks.

Mainland investors are more ready to invest in mismatched products, with 82 per cent saying they should have such a right. Baby boomers in particular hold this view.  

Close to 90 per cent of mainland investors believe that the products recommended by investment advisors are very or quite suitable for them. Amongst the different cohorts, baby boomers seem to be the most satisfied. In contrast, only 59 per cent of Hong Kong investors think the products are suitable, and the gap is more acute for Generation Y.

The top three criteria cited for finding a product suitable were: “the product provided the expected level of income for me” (47 per cent), “I received dividend income” (47 per cent), and “the product fits my return requirement” (42 per cent).