Fund Investment Encyclopedia | How to Invest Funds in Hong Kong

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Dividend Funds (Bond Funds) Investment Guide

What is a Dividend Fund?

The primary objective of a dividend fund is to generate income through investment and to distribute dividends to investors on a regular basis. This fund typically invests a portion of the funds in its portfolio in assets that provide stable cash flow, such as high-dividend stocks or bonds, effectively generating passive income, making it popular for investors who have retirement plans or need regular cash income.

The income of the dividend fund comes mainly from two aspects: capital gains and dividends or debt.

Capital gain refers to the gains generated by the increase in market value of the assets held by the fund. Dividend or interest income refers to dividends or interest paid on shares or bonds held by the Fund.

Findings are usually paid to investors on a regular basis (for example, quarterly or annually). Investors can choose to make cash payments directly to us, or they can choose to reinvest the message in the fund to buy more fund shares. The current sale of the Futu Daisie Financial Group has been sold as cash earnings.

However, it should be noted that dividend levels of dividend funds may fluctuate due to changes in market conditions, fund performance or asset allocation strategies.

Dividend funds on the market are mainly based on bond funds.

What is a Bond Fund?

Bond funds are a collection of different types of bonds, including (but not equal to):

Bond Fund Composition

By region, they can be simply divided into global bond funds, regional or single country bond funds.

By investing in multiple issuers and bonds with different maturities, bond funds can reduce the risk of investing in a single bond, offering more stable returns and the potential for capital preservation.

You can participate in the bond market by purchasing shares in a bond fund, while the value of a bond fund varies based on the fluctuation of the value of the bonds held by the fund, making it easy for you to invest in bonds without having to buy and manage individual bonds directly.

How to Buy Dividend Funds (Bond Funds) in Hong Kong?

Futu Sizhi Financial Fund offers: Cash Funds (Cash Money), Party Funds Equivalent Fund Products. If you buy funds in Futu, use the Fee immediately: 0 gold, 0 platform fee, refuse to buy and return fee, purchase fund is reduced to HK$0.01 /USD for all transactions. Click on the below image for details.

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