As the coronavirus pandemic shatters global economies, central banks around the world have taken measures to ease interest rates to boost consumer spending and financial liquidity.

Chinese investors are surely feeling the pressure of historically low interest rates, as the country lowered interest rates to boost the economy heavily hit by the coronavirus pandemic. Investment targets, especially fixed income, have been offering much lower returns.

As a result, investors have been moving away from fixed-income investments such as Alibaba's Yuebao, bonds, and wealth management products in search of better returns. And the equity market is one of the main options.

"The Chinese equity market hasn't been a bull market in many years. If you look at the Shanghai composite index, the index level was at 2,000 20 years ago, now it barely reached 3,000, so if you are really talking about long-term investment, you are looking at equity, because these indexes haven't risen for many years. Their valuations have dropped to 10-20 percent of the previous level, which means their fundamentals have been increasing by five or seven times. Prices stay the same, which means their future potential is huge," said Chen Jiahe, CIO at Novem Arcae Technologies.

But it also means more volatility and higher risks. Experts said finding the right fund manager to invest in equity funds or picking an index fund are good options for retail investors.

"For normal investors, their best choice would be equity funds. But there are things to do to pick good equity funds. The first is to look for a good fund manager. But that should not be judged by only past performance – who has been giving the best return for the past three years, for example. That's definitely a bad choice. Understand the capability of a fund manager and the logic behind his investment is very important. Another way is picking an index fund, as Warren Buffett always says if you don't know how to invest, pick an index fund. But overall equity funds would be very good for normal investors as long as the work is done," Chen said.