Mutual fund electronic transaction accounts grow 30%


Echo Shiau,The China Post

The number of electronic transaction accounts in the securities investment market has grown by more than 30 percent, to over 188,000 accounts since the beginning of 2002 until the end of May, according to the latest statistics released by the Securities Investment Trust & Consulting Association of R.O.C. (SITCA). SITCA officials point out that the rapid growth in accounts show that online trading has become increasingly popular among small transaction size mutual fund investors. Currently there are 19 securities investment trust companies that provide electronic trading services. Of this, Jardine Fleming Investment Trust Company has the most number of active electronic transaction accounts (online and AVR) in service. As of the end of May, the company had more than 68,000 accounts, and reached 70,000 in mid-June. Jardine Fleming now accounts for the most number of electronic transaction accounts, with a 36.3 percent market share of the entire securities investment electronic trading market. Moreover, its online trading volume has maintained over 50 percent market share just about every month, ranking it number one among online trading for mutual funds. Jardine executives said that the number of subscription transactions as well as subscription volume conducted through the company’s investment and financing Web site has always represented more than 60 percent of the firm’s actual subscription volume each month. Many individual investors are concerned that they will not be in time to subscribe for new mutual funds. Meanwhile, when compared with other traditional subscription channels, online trading offers fast, easy and convenient access, therefore making it the most popular way of investing in mutual funds for individual investors. Since the beginning of the year, electronic transaction accounts in the securities investment market has grown by more than 30 percent. Industry experts claim this is due to positive first quarter market results as well as the fast, convenient, and rich market information investment and financial Web sites provided by the securities investment trust companies. Some companies even offer preferential rates and discounts for online trading which will continue to attract even more new accounts.