AN ONLINE survey of 300 investors has yielded two takeaways: One is that Singapore mutual-fund investors want a stream of income from their investments, and the other is that they have a stronger home bias than regional investors.
In the survey commissioned by insurer Prudential's asset-management arm Eastspring Investments, it emerged that the desire for income was more pronounced among those married with children, and those planning to buy a mutual fund in the next six months.
Asked how they would change their strategy if interest rates rose, nearly a quarter said they would invest more in an income-generating fund.
Koh Hui-Jian, Eastspring's head of retail sales told The Business Times: "Income is a continued theme, certainly from a product perspective.
'The kind of products you can offer in the income space can be varied across asset classes... My message is still to diversify across asset classes and funds.'
- Koh Hui-Jian, Eastspring's head of retail sales
"But the kind of products you can offer in the income space can be varied across asset classes."
Investors looking to buy income-oriented funds can choose between equity high-yields, fixed-income funds or multi-asset funds, she noted.
"My message is still to diversify across asset classes and funds."
Eastspring's survey was conducted in July. Of the 300 Singapore investors surveyed, two-thirds were current mutual-fund investors and the remaining third, prospective investors.
Those surveyed were between 25 and 55 years old, were the sole or joint financial-services decision-makers in the household, and had an average monthly household income of S$8,900 - which makes them representative of typical households in the broader population.
The current mutual-fund investors among them put a third of their allocation to Singapore, but said they expected this to dip to 29 per cent in the next six months.
A one-third allocation to home is higher than what investors in the other regions - Hong Kong, Malaysia, Taiwan and Indonesia - allocate to their respective home territories; those investors allocate only 20-plus per cent, Ms Koh said.
Anticipated top three holdings among income funds in the next six months are emerging market bonds, Asian high-dividend equities and Asian bonds.
For growth funds, investors expect to hold mainly Asia-Pacific ex-Japan equity, emerging markets equity and global equity.