Fund Investment Encyclopedia | How to Invest Funds in Hong Kong

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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?

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