Investors can enjoy the following advantages to invest in mutual fund.

Professional Management

Fund is managed by respective fund manager who seeking for the best investment opportunity. Fund manager always keep track of the market trends and revise its investment strategy and equity/bond selection. For the rapid changes and complexity of financial market, investing in mutual fund not only enjoys professional management of experienced investment team but also diversifies your risks.

Diversification

Diversification means "Don't put all the eggs on a basket". Mutual fund investment can provide you the opportunity of investing in different financial tools and region in order to diversify your investment risks. Besides, an equity fund invests in various types of equity and therefore overall return will not be highly affected for a poor return of single holdings.

Liquidity

Mutual fund investment offers high liquidity and without constraint of redemption period (except guaranteed fund). Besides, the redemption prices will be calculated by total net asset value of underlying holdings. It is important especially that there is a large bid and offer price spread of stocks with low transaction volume in downside market. Redemption of mutual fund units is different from stock investment; it doesn't require both buyers and sellers on the market for each transaction. Investors are hassle free to redeem its units anytime, which is important in adverse market situation.

Wide investment Choices

Through mutual fund investment, investors can invest in global financial markets in which it is difficult to access in. As different country/regions perform variously, investors can invest in the market segment with the highest potential growth.

Low Investment Amount

As mutual is fund is pool up together all the capital to invest in various assets, the minimum investment amount is as low as few thousands USD. The benefit of mutual fund investment is you can use little capital to invest various stocks/regions.

Factors to Consider:
The following factors should be considered before making your investment choices:

1. Investment fee including management fee, initial charge and switching fee etc
2. Fund manager's investment experience
3. Proposed fund investment strategy (e.g. Top-down, bottom-up approach, etc)
4. Track record and past performance of fund
5. Fund house management style and investment approach
6. Products and services support provided by respective fund house
7. Authorisation of the fund by the SFC.

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