(Yicai Global) March 31 -- More than 70 percent of Chinese investors who own funds for less than three months take a loss, while nearly 90 percent of those who stick it out for over a year turn a profit, according to new research.

Investors who trade often earn an average 28 percent less than those who stay put, The Paper reported, citing a first-quarter fund investors report Alipay’s wealth management platform and 10 fund companies jointly released today. Punters who buy when prices rise and sell when they fall earn 40 percent less than the fund’s net gains, the report said.

Investors who often check their returns tend to hold funds for a shorter period. Frequent attention to earnings reflects an unsteady mindset and is also the cause of frequent transactions, the report said.

Nearly 30 percent of equity fund investors had a stop-profit operation in the first quarter, with an average return of 14.6 percent, according to the report, which reached its conclusions based on a survey of nearly 100 fund products Alipay selected.

Among investors who made a one-time investment, 45 percent held a single fund for less than six months, while those who adopted combinations, more than 70 percent held a single fund for more than half a year.

After three straight quarters of gains, China’s stock market retreated in the first three months of this year. Amid increasing market volatility, many investors have been feeling anxious and buying high and selling low.

Investors can share the dividends of corporate growth and avoid the risks of economic and market volatility only through long-term investment, Fullgoal Fund Management said. Investment should be a long-term business, it said.

Editor: Peter Thomas