E Fund Drives China's Shift to Client-First Investment Advisory

E Fund Management is pioneering a client-centric "fund investment advisory" service in China, fundamentally shifting the wealth management landscape from product sales to a buyer-side model. This approach leverages professional expertise and advanced technology to provide comprehensive portfolio management and guidance, aiming to improve long-term investor outcomes.

Foundational Shift to a Buyer-Side Advisory Model

• Prioritizes Client Interests: The model's core is "Buyer-Side Advisory" (买方投顾), where advisors charge fees directly to clients, aligning incentives with the client's success rather than earning commissions from product sales.
• Focus on Portfolio Management: It moves beyond recommending single funds to constructing and dynamically managing diversified portfolios tailored to a client's risk tolerance, horizon, and goals.
• Holistic Investment Guidance: The service includes ongoing consultation, market analysis, and behavioral guidance to help clients adhere to rational investment principles through market fluctuations.

E Fund's Strategic Execution and Features

• Client-Centric Fee Structure: E Fund derives revenue solely from advisory fees, typically 0.1% to 0.8% of client assets annually, reinforcing its commitment to objective advice.
• Professional Expertise and Broad Selection: A dedicated and independent research team of nearly a hundred professionals conducts due diligence across over 12,000 market-wide funds to build diversified portfolios.
• Advanced Technological Integration: The service heavily utilizes AI technologies like deep learning and machine learning for investment research, portfolio management, and personalized client solutions.
• Broad Accessibility and Proven Results: Partnering with over 20 platforms like Alipay and Tiantian Fund, the service has reached over 120,000 clients with a reported profitability rate exceeding 70% as of late 2024.

Transformative Impact on China's Wealth Management Industry

• Shifting Investor Behavior: The advisory model promotes a more rational, long-term, and diversified investment approach, moving investors away from speculative, short-term trading.
• Promoting Financial Inclusion: Technology and wide distribution channels make professional wealth management, once exclusive to the wealthy, accessible to a broader base of retail investors.
• Driven by Regulatory Support: The China Securities Regulatory Commission (CSRC) has actively supported the model since initiating the pilot program in 2019, pushing for its formalization and maturation into a more standardized industry.