A sizable number of Taiwanese plan to buy investment products with their year-end bonuses as bank savings generate low interest yields, a JPMorgan Asset Management Taiwan (摩根資產管理) survey said on Thursday.
The survey, which polled 3,759 respondents online between Jan. 30 and Feb. 1 this year, showed that more than 70 percent of Taiwanese have been awarded a year-end bonus below NT$100,000 (US$3,380), with 7 percent getting a bonus above NT$200,000.
As Taiwanese wages average NT$46,000 per month, the figures suggest that year-end bonuses are about equivalent to two months of pay, the fund manager said,
About 46 percent of respondents indicated they intend to invest the money, while less than 30 percent said they would put the money in a bank, the survey said, adding that another 10 percent would prefer to put the money toward paying off mortgage loans.
Among investment options, US dollar-denominated emerging market debt was the most popular with a 44 percent endorsement, followed by high yield bonds at 32 percent, the survey found.
The results show that investors are more cautious because of the current low interest rates, the fund manager said.
Products that pay interest every month are gaining popularity as sales have doubled over the past month and 53 percent of respondents expressed an interest in buying them, the survey said.
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