Investment Basics

What is a Mutual Fund?

A mutual fund is a simple and structured way to invest your savings by pooling your resources with those of thousands of other investors in a common fund which is then invested in a range of securities. These securities can be in Hong Kong or other parts of the world. The assets in the fund are not owned by the mutual fund manager - they are owned by you and your fellow investors and managed professionally on your behalf. Professional fund managers constantly look for investment opportunities and decide on the right time to buy and, more importantly, on the right time to sell.

Advantages of Mutual Funds

Rather than being accountable for the performance of one product, mutual funds set out to provide capital growth by investing in a diversified portfolio. The aim is to strike a balance between steady growth and risk, which is controlled through active portfolio management, detailed research, as well as maintaining a strict discipline. As a result, mutual funds offer many advantages. These include:

Professional Management:

Mutual funds allows the public to gain access to investment professionals. Specialisation enables fund managers who are backed by an extensive network of research resources to search for investment opportunities, stock by stock. The expertise can help generate consistent returns for investors in different market conditions.

Diversification:

Portfolio investing has proved to be a better way to maximise return whilst helping to limit the risk factors. In order to avoid significant capital loss from a single asset, this strategy facilitates purchase of a diverisfied mix of securities. A balanced portfolio typically holds 30 or more securities to smooth out the course for steady growth.

Worldwide investment:

The idea that investors participate in the growth story abroad is hardly new. Assets should be allocated between various regional markets as investments move in cycles. Properly diversifying into markets with low correlation could reduce overall risk in the portfolio.

Convenience and Access:

The dealing procedures of our open-ended mutual funds are conducted on each bank business day in Hong Kong, except corresponding public holidays in Luxembourg. Proactive investors could reassess their portfolio in response to the constantly changing investment environment.

Peace-of-Mind:

Our funds in Hong Kong are authorised by the Securities & Futures Commission in Hong Kong*, and our company is a member of the Hong Kong Investment Fund Association. At Manulife Asset Management, apart from having the backing of Manulife Financial, a leading provider of insurance and investment linked products, your asset is also safeguarded and monitored by an independent custodian/trustee.

*Manulife Global Fund mentioned in the web are authorized by the Securities and Futures Commission (SFC) in Hong Kong. In giving such authorization which does not imply official approval or recommendations, the SFC does not take responsibility for the financial soundness of the Fund or for the correctness of any statements made or opinions expressed in this website.