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Open-end fund invests the capital into different asset classes (such as stock market, bond, currency market, etc), themes (such as energy, REIT, global resources, etc.) and countries / regions, to help you diversify your investment portfolio and to match your personal risk bearing requirement.
Capital guaranteed funds provide principal-protection for investors. Portfolios of this kind of fund concentrates in fixed interest investments, such as bond and currency market, etc., in order to meet their capital and / or return guarantee obligations. The remaining assets may be invested in stocks or options, so as to increase ultimate returns. This kind of funds has a maturity term. Investors holding the funds till maturity will, at least, able to get back the principal and / or the guaranteed return.
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Investment Fund Savings Plan |
Investment Fund Savings Plan provides wide choices of fund, to meet different investment needs. The lowest monthly investment could be as low as HK$1,000. The investment amount is adjustable anytime, to allow you more flexibility in your investment planning.
Advantages of Investment Fund Savings Plan:
- High flexibility
Monthly investment amount is adjustable to suite your needs and the selected funds could be switched or redeemed anytime.
- Large variety of fund choices
Funds managed by reputable investment professionals, and fund management groups and companies to meet your investment needs.
- Dollar cost averaging to lower your cost
It helps you to save time monitoring the market for purchase opportunities, and you can enjoy the privileges brought by long-term average cost of investment. With the same monthly investment amount, more units are bought at market lows and fewer units at market highs, and in the long run, the overall average cost of units bought can be lower than the average unit price over the investment horizon.
The chart here is for illustration purposes only and shows how the principle of dollar cost averaging works.
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| Monthly Investment (HKD) |
Unit Price (HKD) |
Units Acquired |
1,000 |
10 |
100 |
1,000 |
8 |
125 |
1,000 |
5 |
200 |
1,000 |
4 |
250 |
1,000 |
8 |
125 |
1,000 |
10 |
100 |
Total:6,000 |
45 |
900 |
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Average cost per unit (6,000/900) = HKD6.67
Average price per unit (45/6) = HKD7.50
Note: Saving plans do not assure a profit, nor do they protect against loss in declining markets, or against a loss if you withdraw from the plan when the value of your units is less than the cost of the units you purchased.
Investment outcome on different monthly contributions
The larger your monthly contribution, the more goals you can achieve.
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Compound Rate of Return (p.a.) |
Investment Years |
Monthly Investment Amount (HK$) |
HK$1,000 |
HK$2,000 |
HK$3,000 |
HK$5,000 |
0% |
5 |
$60,000 |
$120,000 |
$180,000 |
$300,000 |
10 |
$120,000 |
$240,000 |
$360,000 |
$600,000 |
20 |
$240,000 |
$480,000 |
$720,000 |
$1,200,000 |
30 |
$360,000 |
$720,000 |
$1,080,000 |
$1,800,000 |
5% |
5 |
$68,090 |
$136,180 |
$204,270 |
$340,450 |
10 |
$154,992 |
$309,984 |
$464,976 |
$774,960 |
20 |
$407,458 |
$814,916 |
$1,222,373 |
$2,037,289 |
30 |
$818,698 |
$1,637,396 |
$2,456,094 |
$4,093,489 |
8% |
5 |
$73,414 |
$146,828 |
$220,242 |
$367,070 |
10 |
$181,283 |
$362,566 |
$543,850 |
$906,416 |
20 |
$572,660 |
$1,145,320 |
$1,717,980 |
$2,863,300 |
30 |
$1,417,613 |
$2,835,226 |
$4,252,840 |
$7,088,066 |
10% |
5 |
$77,172 |
$154,343 |
$231,515 |
$385,859 |
10 |
$201,458 |
$402,915 |
$604,373 |
$1,007,288 |
20 |
$723,987 |
$1,447,973 |
$2,171,960 |
$3,619,934 |
30 |
$2,079,293 |
$4,158,585 |
$6,237,878 |
$10,396,464 |
12% |
5 |
$81,104 |
$162,207 |
$243,311 |
$405,518 |
10 |
$224,036 |
$448,072 |
$672,108 |
$1,120,179 |
20 |
$919,857 |
$1,839,715 |
$2,759,572 |
$4,599,287 |
30 |
$3,080,973 |
$6,161,946 |
$9,242,920 |
$15,404,866 |
15% |
5 |
$87,342 |
$174,684 |
$262,026 |
$436,710 |
10 |
$263,018 |
$526,036 |
$789,055 |
$1,315,091 |
20 |
$1,327,073 |
$2,654,147 |
$3,981,220 |
$6,635,367 |
30 |
$5,631,770 |
$11,263,541 |
$16,895,311 |
$28,158,852 |
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Remarks: The above figures illustrate the effects of compound growth and are not indicative of actual returns to be achieved.
This is an investment product. The investment decision is yours but you should not invest in Unit Trusts Funds unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation, investment experience and investment objectives.
Risk Disclosure Statement
The above information is for reference only and does not constitute any offer or solicitation to subscribe or redeem. Price of Investment Funds can go up or down. Investment involves risk. The past performance figures shown are not indicative of future performances. Investors should refer to relevant investment fund offering documents for detailed information and Risk Disclosures prior to any investment fund subscription. If investors have any doubt about this material or any offering document, they should seek independent professional financial advice.
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