No matter what kinds of investments you are looking for, there is a chance that you can find the right unit trust for you at HSBC.
We have an extensive range of hand-picked unit trusts and efficiently pools your money along with other investors to form a large fund that can be invested in a portfolio of financial products, such as equities, bonds and derivatives, designing to suit different customer risk profiles.
How do I know my risk tolerance?
Why invest in unit trusts?
Unit trusts offer several key benefits:
- Pools your money with other investors to maximize your investment potential
- Overseen fully by a professional fund manager
- Add diversity and lower investment risk to your portfolio as a unit trust invests in a wide range of products
- Has no lock-in period as you can sell your share any time (When redeeming unit trusts funds, you will usually receive the money 5-7 working days after filing your request for redemption)
What are unit trusts?
With a unit trust, your money is invested along with many other investors’. Depending on the unit trust, your money could be invested in various asset types, from stocks, bonds to currency trading and more.
Choosing your unit trusts
There are 3 main types of unit trust funds. Depending on your investment goals and risk appetite, you will find some are more suitable than others.
- Equity funds aim to invest in stock exchanges all over the world. But they can also be grouped into global, regional, national or industry-linked funds. Because international economic and political situations are varied, the potential return and risks associated with equity funds are generally higher than money market or bond funds.
- Bond funds invest in bonds with different maturities and yields. The return of a bond fund is relatively stable in comparison to equity funds. Examples of stable bond funds are those that invest in government bonds and corporate bonds.
- Money market funds focus on investing in short-term money market instruments such as treasury bills, NCDs, time deposits and RPs. Money market instruments tend to have short maturities and can generate a steady stream of income. They are a relatively low-risk investment.
Ways to invest
Unit trusts allow you to either invest a lump sum or set up a monthly investment plan.
- Lump sum investment let's you choose a unit trust and invest a set amount into it. Generally, there is a minimum limit to invest in a unit trust, which varies by fund.
- Monthly investment plan let's you invest a fixed amount each month into unit trusts of your choose. We'll execute your investment order each month automatically.
Things to know
- All money you invest in unit trusts is an investment, not a deposit. Therefore, your money isn't protected by the Central Deposit Insurance Corporation (CDIC).
- Remember when choosing unit trusts that past performance does not guarantee future performance. The price of the unit trust or mutual fund may fluctuate. The value of your investments could go down as well as up, and you could get back less than you invested.
If you already invest with HSBC, just log on to browse, buy and sell funds.
If you have not applied for online banking, you can also register online and get the fund subscription discount.
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