Fund Investment Encyclopedia | How to Invest Funds in Hong Kong
What is a currency fund? How to Buy a Currency Fund in Hong Kong
What is a Fund?
A fund is an investment tool that brings together a large number of investors' funds and is managed by a professional fund manager. By asset class, these include currency funds, bond funds, equity funds, etc. They can be divided into dividend funds, cumulative funds, ETFs, trusts, private funds, etc. Some are high risk and some are relatively low risk, and you can diversify your investment risk based on your fund investment objectives and investment strategy.
What is a currency fund
Money Market Funds (MMFs) typically invest in short-term maturing financial products, such as government bonds, short-term corporate bonds, bank deposits, and bills, and fixed income products, which are relatively low risk and high liquidity, making them suitable for any type of investor, especially conservative ones.
Characteristics of currency funds
The portfolio of the currency fund consists mainly of low-risk financial products to protect the capital invested. These financial products usually have a high credit rating and the issuer has a strong ability to repay interest.
Low volatility
The goal of a currency fund is to maintain a stable net worth, usually the net value of each unit remains unchanged or only slightly fluctuated in the net value of the dollar or its equivalent currency. This makes it possible for money funds to be protected and valued at a stable value.
Lower risk
If you want to have money waiting for investment opportunities, want your money to resist inflation and even recover time value, and you can always use your money to invest elsewhere? A currency fund may be one of your investment options.
Flexible and convenient
Currency funds typically have shorter investment periods, usually within a few months or a year, and convenient fund management features such as easy account opening, subscription and redemption, and high liquidity, and flexibility to manage your funds according to your needs.
Lower Expected Returns
Risk and profit are often proportional. Due to the lower investment risk of currency funds, the expected returns will be relatively low.
Futu Cash
Futu Daishi Financial Group is guided by 6P principles, based on performance, investment philosophy, investment mix, management team, management company, investment flow, investor focusChoose a quality currency fund, Create Futu Cash Grants.
With as little as HK$0.01, you can invest in currency funds for an average return of up to 5% *, stable, money-changing returns; and let everyone buy and sell at the same time, invest anytime, withdraw at any time, without worrying about being strapped for cash, so you have ample cash flow at any time Pay for daily life.
*5% of all USD FX funds reported near one-year average earnings from Futures, data up to 5 July 2024. Historical earnings are for reference only, the past performance of the fund cannot be predicted after the day
Fund Fees
Unlike trading stocks on their own, the fund is managed by a professional investment manager and therefore requires payment of management fees. Therefore, before choosing a fund, in addition to considering the return performance of the fund, pay attention to the various costs involved when buying a fund, otherwise you will earn a price etching fee at any time. MOST FUNDS DEDUCT FEES AND EXPENSES FROM THE FUND USING THE “DEDUCTION FROM FUND” METHOD.
Types of Fund Fees | Cost List | definitions |
|---|---|---|
Transaction Fee | Subscription Fee | Fees paid when purchasing the fund (generally deducted from the investment amount and paid directly to the investment advisors/distributors). |
Conversion Fee | Withdraw the investment amount from one fund and the fee paid when placed in another fund of the same fund company. | |
Redemption Fee | Fees paid when the fund is sold. | |
Continuing expenses (deducted from fund assets) | Management Fee | Pay the fund manager a fee for providing fund management services. |
Hosting Fees | Pay the custodian for the provision of hosting services to the custodian. | |
Performance Fees | Fees paid to the fund manager if the fund makes money. | |
Administration Fee | Expenses related to fund administration and operations. |
How to buy a currency fund in Hong Kong?
Japanese fund, Hoi Futu. Buy funds on Futu, use the Fee rate immediately: 0 gold, 0 platform fee, non-acceptance and refund fee, purchase fund gate is lower to HK$0.01 /USD for all transactions. To buy funds in Futu, you first need to have 2 accounts: a securities account and a fund account:
How do I open a securities account?
Step 1: Go online to Futu and sign up for a new account.(Register now)
Step 2: Open a securities account on the basis of a Futu account(Open account now)
Step 3: Fill in your personal and financial details (includingBank Code and Account Number), and then check in via bank transfer, debit card, or using Apple/Google Pay.(Invest immediately)
How do I open a fund account?
If you need to open a fund account separately, you can:
Click [Open Account] - [Fund Open] on the APP to open a fund account only.
Note: Futu has supported the opening of the fund account and the replenishment of the securities account
If you need to trade stocks and funds at the same time:
On the APP, click [Open Account] - [Fast Online Account] - Check the Securities Account and Fund Account at the same time as you select the account to open the corresponding account.
After successfully opening an account, you can buy funds:
Select the fund you want to buy and go to the details page. Select [Payment Account], enter the purchase amount, click [Purchase] at the bottom of the page and confirm your purchase.
Tips: Regardless of how low-risk the investment product is, it is advisable to read the documentation on the relevant investment product carefully before investing, understand detailed investment rules and risk tips, and seek professional advice if necessary.
