Stock Fund Subscriptions Surge 216% This Year: Neuberger Berman Advocates Dual Equity-Bond Strategy and Cash Flow-Oriented Investing

In 2026, global financial markets faced multiple challenges, including geopolitical conflicts, fluctuating expectations around the Federal Reserve's rate cuts, and volatility in AI-related stocks. However, market capital did not retreat but continued to flow into risk assets. According to statistics from the 'Cnyes Fund' platform, as of the end of June, stock fund subscription amounts this year surged 216% compared to the same period last year, indicating that investors still have confidence in the long-term growth potential of equities.

Looking ahead to the second half of the year, Neuberger Berman Investment Trust suggests adopting a dual strategy—"equities for growth, bonds for income"—to navigate the complex interplay of policy shifts and market uncertainties. Meanwhile, Cnyes Fund recommends positioning equities at the core of asset allocation, combined with flexible cash flow planning to balance capital appreciation with lifestyle needs.

Dai Jun-Mei, Vice President of Neuberger Berman Investment Trust, stated that while investors must continue monitoring the policy direction of the new Federal Reserve Chair and global political-economic developments, corporate earnings remain the most critical driver behind stock market gains. With the continued expansion of AI applications, the so-called "Magnificent Seven" U.S. tech stocks have undergone corrections, with their price-to-earnings (P/E) ratio declining from a five-year average of 31.2x to 25.1x, bringing valuations back to more reasonable levels. Market capital is also beginning to shift from large-cap tech stocks toward non-U.S. and emerging markets.

She recommends maintaining equities as a core holding, emphasizing that Taiwan occupies a pivotal position in the global AI supply chain. Corporate earnings in Taiwan are projected to grow nearly 40% this year, with fundamentals significantly stronger than most other markets. The AI trend is redefining the long-term growth potential of the Taiwan stock market.

In addition to equities, Dai noted that the high-interest-rate environment has restored bonds as a key component of asset allocation. Current bond yields remain above long-term averages, and high-quality investment-grade bonds offer both income and defensive value, providing stable coupon payments. If a rate-cutting cycle begins in the future, bond prices could rise, offering capital gains. Historical data shows that the earlier investors position themselves before rate cuts, the greater the potential for dual returns. For example, over the past 30 years, the U.S. Composite Bond Index delivered an average return of 10% when invested one year before rate cuts, compared to 5.5% for six months prior and 4.2% for three months prior. Now is an opportune time to gradually build bond exposure.

Regarding investment trends this year, Luo Yao-Ting, Head of Research at Cnyes Fund, noted a significant shift in user trading behavior on the platform. Stock fund subscription amounts increased 216% year-on-year, with the average subscription per user surpassing that of bond funds for the first time. The proportion of investors aged 50 and above allocating to stock funds has also risen, and higher-investment clients tend to hold a greater share of stock funds. This indicates that both retail and high-net-worth investors are increasingly prioritizing the long-term growth potential of equities.

Luo highlighted another noteworthy trend: nearly 40% of current stock fund investors previously invested in dividend-focused funds. This suggests that investors are not abandoning their need for cash flow but are shifting toward new investment models that balance capital appreciation with income generation.

Luo explained that in the past, many investors habitually chose dividend funds to receive monthly payouts. However, in the long run, total return—not dividend payments—has the greatest impact on investment outcomes. For those seeking both equity growth and cash flow, it is not necessary to limit themselves to dividend funds. Instead, they can use "Cnyes Freedom Pay" to periodically withdraw a portion of their investment gains, creating a personalized cash flow. This approach preserves the long-term capital appreciation potential of stock funds while meeting needs such as retirement income, family expenses, or financial planning, making investments more flexible.

Dai emphasized that the trend of AI-driven corporate earnings growth remains intact, and market volatility provides an opportunity to re-evaluate asset allocation. Equities and bonds play distinct and complementary roles, both of which are indispensable. Luo added that the key to investing is not just pursuing returns, but building a financial strategy aligned with personal needs. By combining stock funds with "Cnyes Freedom Pay" for self-directed cash flow planning, investors can achieve a balance of long-term growth, risk management, and liquidity, enhancing investment flexibility.

*Disclaimer: References to individual stocks, funds, or futures products in this article are for informational purposes only and do not constitute investment advice. Investors should make independent judgments, carefully assess risks, and bear their own losses.