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By Faith Hung and Roger Tung
TAIPEI, March 12 (Reuters) - Total assets under management in Taiwan’s investment fund industry are expected to grow by more than a third to T$30 trillion ($968 billion) within the next three years, the chairman of Taiwan's investment fund industry association said in a recent interview.
The forecast represents a nearly 36% jump from the current T$22 trillion, reflecting a shift in local investment habits from single stock selection to exchange-traded funds (ETFs) that provide broader market exposure, Paul You, chairman of Taiwan's Securities Investment Trust & Consulting Association, told Reuters in an interview on February 26.
You spoke shortly before the Iran war roiled global markets and dramatically changed the investment outlook. Reuters was not able to reach You for his response to the conflict.
In the interview, You said the expansion of investment fund products reflected the strong performance of the Taiwan stock market .TWII, which is up 16% this year, following a 25.7% gain in 2025. The advance, led by Taiwan Semiconductor Manufacturing Co. 2330.TW, TSM.N, has boosted Taiwan's market capitalisation to the seventh highest worldwide, he added.
"People's investment habits have changed," You said, noting investors' desire for easy exposure to Taiwan's tech stocks, especially TSMC.
Investors are hopeful TSMC , the world's largest manufacturer of advanced chips used to power artificial intelligence, and other AI suppliers will benefit from the growth potential of clients including Nvidia NVDA.O and Apple AAPL.O.
The growing demand for ETFs is being fuelled by profit yields, as well as the convenience of the funds, which offer simplified market access for retail investors, You said.
The fund management industry is also looking towards legislative reforms to unlock new asset classes, and You said he expected the Taiwan legislature to soon amend the law to allow asset managers to raise capital for REITs.
"The proposal has gained significant momentum, with lawmakers from all three major political parties voicing support," You said.
(Reporting by Faith Hung and Roger Tung; Editing by Jacqueline Wong and Kate Mayberry)
((faith.hung@thomsonreuters.com;))
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