Futu survey found that Hong Kong people overwhelmingly choose 10 million as the threshold for financial freedom, expecting to save for 111 years.

Futu Securities International (Hong Kong) Limited (referred to as 'Futu')Publishing the "Futu Investment Preferences and Financial Freedom Report" (referred to as the "Report"), the survey found that the majority of Hong Kong respondents set 10 million Hong Kong dollars as the threshold for financial freedom. Without investing, it is estimated to take 111 years to save up, suggesting only one generation can benefit. The report estimates that to reach the goal earlier, this group needs to invest around 40% of their income. Currently, over 50% of respondents' investment income proportion is still below 20%, indicating a significant gap between the general investment level and ideal goals.

The report shows that compared to supporting actual living expenses, Hong Kong residents on platforms are more eager to 'get rich' through investment, and those with more accumulated investment experience have higher expectations for wealth. Among the six investment goals, the most chosen by Hong Kong residents is 'getting rich' (27%), followed by 'retirement' (21%), although many Hong Kong residents have dreams of owning property, it only ranks third in the survey. It is evident that many investors in Hong Kong expect investments to significantly increase their overall wealth levels and achieve different life goals.

Among different groups, investors with more experience have higher expectations for wealth, with nearly seven out of ten (67%) of those with over 5 years of experience choosing 'getting rich' as their goal, higher than other respondents.

In recent years, financial independence has become the dream of many Hong Kong residents. The report points out that over 41% of respondents define 10 million as the threshold for financial freedom. Calculating based on the median of the primary monthly income (0.02-0.03 million Hong Kong dollars) and savings level (20%-40%) of this group, it would take over 111 years to achieve financial freedom solely through savings.

Overall, according to surveys, Hong Kong people still prefer saving, with the majority choosing to save 20-40% of their income. One-fifth of the population chooses a savings income ratio of 40-60%. In terms of investments, they are more conservative, mainly choosing to invest 10-20% of their income, with over half of the population investing less than 20%.

Futu Brokerage's senior investment advisor Kwong Chi Kit said:"It is clearly unrealistic to achieve financial freedom in 111 years through savings. If Hong Kong people wish to achieve financial freedom earlier, the simplest and most direct way is to increase their investment ratio and sources of income. Taking an example of HK$10 million and a monthly income of HK$200,000 to HK$300,000, investors can try to increase their investment share to 40%, investing HK$100,000 per month, with an investment return of about 8% per year (MSCI World's annual return rate over the past 10 years is about 9.6%), achieving their financial freedom goal in 26 years. However, currently, more than half of investors have an investment income ratio of less than 20%, and many investors ignore the erosion of purchasing power due to inflation. The actual financial gap may be even greater, indicating that there is still significant room for improvement in the overall investment income ratio."

When asked about their outlook, the report indicates that 41% of respondents are bullish on the post-pandemic market consumption recovery, surpassing the expectation of a slower pace of rate hikes by the U.S. Federal Reserve (24%). Despite the market turbulence in 2022, there were still investors last year with high returns, with high-income individuals mainly among those with returns exceeding 30%. The survey shows that they are most bullish this year on the "Information Technology" (20%), "Consumer Staples" (15%), and "Utilities" (9%) industries.

In 2023, there may be a new situation, investors are relatively proactive in choosing investment tools, and besides stocks, fund products have also become popular among investors. According to the futu brokerage platform data, last year, over 70% of fund investors profited from fund investments, experienced investors tend to hold funds for a long time. The survey also found that experienced investors all recognize the importance of investing in funds, including risk diversification, professional fund manager management, the ability to make investment decisions and adjustments based on market conditions and multiple factors to counter market fluctuations, relatively stable.

When selecting funds, 'fund fees' become the most concerning factor for investors, accounting for 20%, followed by 'historical performance' (19%) and 'fund rating' (15%), showing that investors are more worried that fund costs will erode the returns brought by the fund. At the same time, the survey also shows that many investors will consider how fund investment strategies can achieve investment goals and whether the fund purchase process is convenient.

Founder of futu brokerage, Leaf Li, stated:"The survey shows that many Hong Kong people link investment to wealth creation, indicating that investment broadens people's imagination of wealth. Although achieving financial freedom is not easy, establishing an investment plan to achieve different life goals is still an indispensable lifelong career. To take the first step, choosing a comprehensive and user-friendly all-in-one trading and investment platform is crucial. Futu, as the largest technology brokerage in Hong Kong, has always kept pace with Hong Kong people, developing different investment areas, providing the latest news on market trends and wealth appreciation, and always dedicated to making investments simpler. Futu is willing to accompany every Hong Kong citizen's growth, constantly enhancing the investment experience with technology, accompanying investors to achieve financial freedom on the 'futu' path."