Fund Investment Encyclopedia | How to Invest Funds in Hong Kong
What is a money market fund? How can you buy a money market fund in Hong Kong?
What is a fund?
FundIt is an investment vehicle that pools funds from numerous investors and is managed by professional fund managers. By asset class, it includes money market funds, bond funds, equity funds, and more; based on whether dividends are distributed, it can be further divided into distributing funds and accumulating funds. Other types include ETFs (exchange-traded funds), trust funds, and private equity funds. Some of these carry higher risk, while others are relatively lower‑risk. You can choose according to your investment objectives and strategy to diversify and manage investment risk.
What is a money market fund?
Money Market Funds (MMFs) typically invest in short-term, fixed-income securities such as government bonds, corporate short-term bonds, bank deposits, and commercial paper. With their relatively low risk and high liquidity, they are suitable for investors of all types, particularly those with a conservative investment profile.
Characteristics of Money Market Funds
The investment portfolio of money market funds is primarily composed of low-risk financial instruments, designed to safeguard the principal. These instruments typically carry high credit ratings and are issued by entities with strong capacity to repay both principal and interest.
Low volatility
Money market funds aim to maintain a stable net asset value, typically keeping the NAV per unit at RMB 1 or its equivalent in other currencies, with only minimal fluctuations. This stability enables money market funds to preserve and grow investors' capital.
Lower risk
If you'd like to keep some cash on hand, waiting for investment opportunities; if you want your funds to hedge against inflation and even recapture the value of time; and at the same time be able to access those funds quickly to invest elsewhere, money market funds may be one of your options.
Flexible and convenient
Money market funds typically have short investment horizons, usually ranging from a few months to one year. They also offer convenient fund‑management features, such as easy account opening and the ability to subscribe to or redeem investments at any time, ensuring high liquidity. This allows you to manage your funds flexibly according to your needs.
Expected returns are relatively low.
Risk and return are generally directly proportional. Because money market funds carry relatively low investment risk, their expected returns tend to be correspondingly lower.
Futu Cash Treasure yields returns every day
Futu Elephant Wealth, guided by the 6P principles and based on performance, investment philosophy, portfolio, management team, management company, and investment process, carefully provides investors with…Select high-quality money market funds, creating Futu Cash Treasure.
For as little as HK$0.01, you can invest in a money market fund and enjoy an average return of up to 3.6%*, offering stable, reliable growth that turns your spare cash into yield. Plus, with same-day trading, you can deploy funds whenever you like and withdraw them at any time—so you never have to worry about your cash being locked up, ensuring you always maintain ample liquidity to meet your daily needs.
*The 3.6% average return is based on the average one-year gain of all USD-denominated mutual funds on the Futu platform that have been established for at least one year, with data as of May 20, 2026. Past performance is for reference only; a fund's historical results do not guarantee future performance. Even if a positive distribution yield is recorded, it does not necessarily mean that a positive total return can be achieved.
Money market fund fees
Unlike trading stocks on your own, funds are managed by professional investment managers, which entails paying management fees and other expenses. Therefore, before selecting a fund, you should not only evaluate its performance but also carefully consider the various fees associated with purchasing it; otherwise, you may end up earning returns that are offset by transaction costs, making the investment less worthwhile. Moreover, most funds deduct their fees and expenses directly from the fund's assets.
Fund Fee Category | Fee List | Definition |
|---|---|---|
Transaction costs | Subscription fee | Fees paid when purchasing a fund (typically deducted from the investment amount and remitted directly to the investment advisor or distributor). |
Conversion fee | The fee paid when withdrawing investment funds from one fund and reinvesting them in another fund offered by the same fund management company. | |
Redemption fee | Fees paid when selling a fund. | |
Ongoing expenses (deducted from the fund's assets) | Management fee | Payment to the fund manager as compensation for the fund management services provided. |
Custody fee | Payment to the custodian as compensation for its provision of custody services. | |
Performance Fee | Fees paid to the fund manager when the fund generates profits. | |
Administrative fee | Related expenses for fund administration and operations. |
How can I purchase money market funds in Hong Kong?
Buy funds on Futu. When you subscribe to funds through Futu, you can enjoy "zero fees": no commission, no platform fee, and also exemption from subscription and redemption fees. The minimum investment threshold for purchasing funds is as low as HKD/USD 0.01 per trade. To buy funds on Futu, you first need two accounts: a securities account and a fund account.
How do I open a securities account?
Step 1: Go to the Futu official website and register a new account.(Register Now)
Step 2: Open a securities account based on your Futu account.(Open an account now)
Step 3: Deposit funds and provide personal and financial details (includingBank code and account number), then deposit funds via bank transfer, debit card, or Apple/Google Pay.(Invest funds immediately)
How do I open a fund account?
If you need to open a separate fund account:
On the app, tap [Open Account] → [Fund Account Opening] to open only a fund account.
Note: Futu now supports opening a fund account first, followed by opening a securities account.
If you need to trade both stocks and funds simultaneously:
On the app, tap "Open Account" → "Ultra-Fast Online Account Opening," and when selecting your account type, be sure to check both the securities account and the fund account to activate them.
After successfully opening an account, you can purchase funds:
Select the fund you wish to purchase and go to its detail page.
Select the [Payment Account], enter the purchase amount, and tap [Buy] at the bottom of the page to confirm—your purchase will then be completed.
Friendly Reminder: Regardless of how low the risk of an investment product may be, we recommend carefully reviewing the relevant documentation before investing to fully understand the investment rules and risk disclosures, and seeking professional advice when necessary. Investors should note that fund prices can both rise and fall, and may experience significant short‑term fluctuations; as a result, investors may not be able to recover their entire investment. Past performance is not indicative of future results. Any forward‑looking statements contained in this document should not be construed as guarantees of future performance, and investors should be aware that actual circumstances or developments may differ materially from such statements.
