Fund Investment Encyclopedia | How to Invest Funds in Hong Kong

Views 22182024.04.29

Trust Fund Investment Guide

What is a Trust Fund?

A trust fund is an investment instrument entrusted by an investor to a trust company or asset management company. It brings together the funds of several investors who jointly invest in different financial assets, including stocks, bonds, real estate or other financial instruments, etc.

For example, real estate investment trusts (REITs) are collective investment plans that form trusts and invest primarily in real estate projects that provide investors with a return on regular rental income from real estate projects such as shopping malls, offices, hotels, etc.

The way a trust fund works is that investors entrust funds to a trust company and manage and invest according to the investment strategy of the trust fund.

THE TRUST COMPANY ESTABLISHES A TRUST FUND AND MANAGES THE FUND'S ASSETS IN ACCORDANCE WITH THE INVESTMENT OBJECTIVES AND STRATEGIES SET OUT IN THE CHARTER OF THE FUND. Investors participate in and hold units or shares in the fund by purchasing funds.

One of the selling points of trust funds is that they can be professionally managed. Since the trust fund is managed by a team of professional fund managers, investors can benefit from their expertise and experience without having to make investment decisions and operations on their own. However, investors will have to pay higher management fees and other related fees, or there is an opportunity to affect returns.

In addition, trusts typically have higher capital sizes, allowing investors to spread risk and access a wider range of investment opportunities.

How to invest in a trust fund in Hong Kong?

Futu Sizhi Financial Fund offers a wide range of fund products to purchase funds on Futu, with an immediate interest rate of 0 USD: 0 gold, 0 platform fees, no purchase and return fees, and purchase of funds can be purchased at less than HK$0.01 per USD. Click the below image to learn more.

Futu Trusts, which is wholly controlled by Futui Control Co., Ltd., has provided trust and corporate secretary-related services to millions of listed companies and high-net-worth individuals, and has trust management assets of more than US$100. Futu Trusts offers a wide range of services, includingCorporate Equity Incentive (ESOP) Trust,Family Trust,Insurance Trusts,Charitable Trusts, the company secretary andPrivate Equity Fund Servicesetc. For details, please click:Futu Trust - Employee Incentive Scheme Trust | One Stop Trust Company

One-stop trading with Futubull

Enjoy welcome rewards and lifetime 0 commission on HK stocks

Terms and conditions apply right-arrow

This content is not and should not be regarded as an invitation, solicitation, invitation or recommendation to buy or sell any investment products or the basis for investment decisions, nor should it be construed as professional advice. Before making any investment decision, investors should fully understand the risks and the relevant legal, tax and accounting perspectives and consequences, and decide based on their personal circumstances whether the investment is suitable for their personal financial situation and investment objectives, and whether they can afford it. Appropriate professional advice should be sought where necessary regarding the risks.

The information from third parties displayed on the Futu application, website and event pages is for reference only and does not constitute any recommendation.

The above content does not represent any position of Futu and does not constitute any investment advice related to Futu. Before making any investment decision, investors should consider the risk factors related to investment products based on their own circumstances and seek professional investment advice when necessary. Futu tries its best but cannot confirm the authenticity, accuracy and originality of the above content, and Futu does not make any guarantee or commitment in this regard.

"Futubull" is a one-stop financial investment and trading platform. The securities trading service is provided by Futu Securities International (Hong Kong) Limited.

Recommended