What are mutual funds?

A mutual fund is an integrated investment vehicle that brings together many different investors. In accordance with the fund's investment objectives, professional fund managers will invest in various types of asset classes including stocks, bonds or other investment tools.

How do mutual funds work?

Mutual funds usually invest widely in different instruments, therefore investors may be able to diversify their investments at a lower cost. Compared to holding a single security, the concentration risks may be relatively controllable. ^

A financial professional can help you evaluate your options and invest base on your financial situation and risk tolerance.

What are the advantages of investing in mutual funds?

Lower entry threshold

The entry threshold of the fund depends on your budget. You can choose a one-off investment amount or set up a monthly subscription at a minimum of HK$2,000 to help capture investment opportunities in the global financial markets and asset classes.

Professional management to help avoid mistaking market conditions

Facing the volatile times in the market, professional fund managers generally have the expertise to adjust investment decisions based on market conditions and other factors and manage risks in the process, eliminating the need to spend extra time on your research or capture market opportunities. You don’t have to spend time dealing with administrative tasks such as foreign exchange and dividend-related matters.

Diversified investment

You are free to choose your favorite market or any specific industry and be widely distributed worldwide. Depending on your risk appetite, you can choose money market funds to help mitigate risks, bond funds that generate stable returns, equity funds with high-potential growth, or multi-asset funds that harness risk and return.

Help you to reach your retirement goals

In addition to the MPF, you can increase your retirement reserves by investing in mutual funds. Choose your investment portfolio according to your target retirement age, risk tolerance and retirement vision.

The next episode of Principal Investor Education will introduce you to the characteristics of certain investable asset classes of mutual funds in a simple way.

 

^Mutual Funds contain fees, please review the fees of any potential investment options prior to investing.

Carefully consider a fund’s objectives, risks, charges, and expenses. Consult your financial professional or visit our Mutual Fund page for more information. Please read it carefully before investing.

Investment involves risks. There is no guarantee of investment returns, and investors may not be able to get back all of the investment principal. This content is for reference only and does not constitute an offer, solicitation or invitation, promotion, inducement, or any kind or form of representation, or the conclusion of any suggestions or recommendations for the mentioned funds and/or product transactions.