Most people in Taiwan believe the domestic market offers the best investment opportunities over the next year, according to a survey conducted by Legg Mason Global Asset Management.
Domestic stocks were voted the No. 1 choice for 63 percent of the local population, said the U.S.-based institutional investor.
While most people choose domestic stocks as the preferred form of wealth management, Taiwan investors remain enthusiastic about overseas investment opportunities.
Currently eight in 10 of those surveyed held investments outside of Taiwan. The proportion of foreign assets in their portfolios averages 20 percent, which comes only after Singapore in Asia.
International stocks are considered the second best investment choice after domestic stocks. They are viewed favorably by 41 percent of those surveyed. The preference is trending up, from 32 percent in 2014 to 36 percent in 2015, Legg Mason noted.
The top five overseas opportunities, according to Legg Mason's survey, in order of preference, are China (viewed favorable by 63 percent of respondents), the U.S. (55 percent), India (42 percent), Japan (32 percent) and Europe excluding the UK (22 percent).
Investors' Lack of Confidence
According to investors, the top risk factors in the domestic market are economic instability and political uncertainty in the wake of the presidential election.
Also, close to 70 percent of investors over the age of 40 are concerned that rising interest rates may damage economic recovery.
It is worth noting that investors in Taiwan have comparatively higher income-generating expectations from their investments - 9.4 percent. The actual rate of return was pegged at 7.3 percent in 2015, however.
Source: China Post