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All expand | All closedGeneral Questions
1. What is Unit Trust?
Unit trusts (and mutual funds as they are sometimes known) are professionally managed investment schemes that pool the money of like-minded investors together to invest into equities, bonds, and currencies.
2. Why should I invest in unit trusts?
Professional Management:
Unit trusts are managed by professional fund managers whose mandate is to identify the best investment opportunities, invest in them, and manage risk according to the unit trust's investment objective.
Access to investment opportunities worldwide:
With one simple investment of as little as US$1,000, an investor can access these overseas investment opportunities through unit trusts.
Risk diversification:
As each unit trust invests in an average of over 50 securities, it offers investor maximum diversification, that is, the gain of one investment can be used to offset any loss in another due to unforeseen economic, political, and investment factors.
High liquidity and simple maintenance:
Like stocks, unit trusts are traded and can be bought and sold daily, providing easy access to your money. Many fund managers offer daily price quotation on newspapers and through their distributors, making it very easy to track your investments.
Unit trusts are managed by professional fund managers whose mandate is to identify the best investment opportunities, invest in them, and manage risk according to the unit trust's investment objective.
Access to investment opportunities worldwide:
With one simple investment of as little as US$1,000, an investor can access these overseas investment opportunities through unit trusts.
Risk diversification:
As each unit trust invests in an average of over 50 securities, it offers investor maximum diversification, that is, the gain of one investment can be used to offset any loss in another due to unforeseen economic, political, and investment factors.
High liquidity and simple maintenance:
Like stocks, unit trusts are traded and can be bought and sold daily, providing easy access to your money. Many fund managers offer daily price quotation on newspapers and through their distributors, making it very easy to track your investments.
3. What types of funds can I invest through Phillip Securities?
Asset Allocation Fund
This fund is a balanced investment portfolio; the purpose is to obtain capital gain and regular income.
Equity Fund
Equity fund mainly invests in stock (usually not less than 70%). The purpose is to maximize the capital gains.
Bond Fund
Bond fund is mainly invested in bonds or other fixed income securities (usually not less than 70%).
Money Market Fund
Money Market Funds that invest in short-term money market instrument (usually less than one year), such as government securities, term papers, banks deposits, and other assets dominated in different currencies.
This fund is a balanced investment portfolio; the purpose is to obtain capital gain and regular income.
Equity Fund
Equity fund mainly invests in stock (usually not less than 70%). The purpose is to maximize the capital gains.
Bond Fund
Bond fund is mainly invested in bonds or other fixed income securities (usually not less than 70%).
Money Market Fund
Money Market Funds that invest in short-term money market instrument (usually less than one year), such as government securities, term papers, banks deposits, and other assets dominated in different currencies.
4. Are there any dividend payout from unit trust?
Dividend or interest income paid out from the fund. Dividend can be distributed by cash and be invested in fund.
5. What currencies are unit trust settled in?
Mostly settled in USD, others may be settled in HKD, RMB, GBP, JPY etc.
6. How much do I have to pay for unit trusts?
Mostly the Front-end fee.
7. What happens to a fund if its fund manager has financial problems?
A trustee/ custodian, which an authorized fund must appoint, holds custody of a fund's assets. A fund manager cannot use assets in a fund to solve its own financial problems.
8. What should I consider when buying unit trusts?
When making a decision on what unit trust to buy, you can consider the following:
- Your personal situation
- Your investment goal
- Your investment horizon
- Your risk tolerance
- The fund manager
- Its reputation
- Total funds under management
- Investment process and infrastructure
- After sales service
- The fund
- Historical track record - consistency and absolute results
- Fund manager's expertise and experience with this fund
- Whether it suits your personal situation
9. Is unit trust risky?
As each unit trust invests in an average of over 50 securities, it offers investor maximum diversification, which is relatively less risky than investing in single stock.
10. What are the key risks of investing in funds?
A Risk of buying/ selling funds:
The price of funds may fluctuate, drastically sometimes. The fund prices can rise or fall, or even become worthless. Investing in particular fund(s) may incur losses rather than generating profits. Market risk (Emerging market funds):
Every investment fund has unique investment focus. Customers should know their own investment objectives, strategies and relative risk levels to make sure that the investment fund suits their financial situation and investment objectives.
Country risk (Emerging market funds):
The government may intervene the market by foreign exchange control policy or limiting the foreign exchange profit redemption, and these may affect the value of the investment or the ability of the investor to gain profit.
Investment Strategy Risk (Hedge Fund/ Alternative Investment Fund):
The use of derivatives by these funds normally has high risk. Due to the leverage ratio, a slight movement in the market may bring large profit. Similarly, significant loss may be incurred too.
The price of funds may fluctuate, drastically sometimes. The fund prices can rise or fall, or even become worthless. Investing in particular fund(s) may incur losses rather than generating profits. Market risk (Emerging market funds):
Every investment fund has unique investment focus. Customers should know their own investment objectives, strategies and relative risk levels to make sure that the investment fund suits their financial situation and investment objectives.
Country risk (Emerging market funds):
The government may intervene the market by foreign exchange control policy or limiting the foreign exchange profit redemption, and these may affect the value of the investment or the ability of the investor to gain profit.
Investment Strategy Risk (Hedge Fund/ Alternative Investment Fund):
The use of derivatives by these funds normally has high risk. Due to the leverage ratio, a slight movement in the market may bring large profit. Similarly, significant loss may be incurred too.
11. What unit trusts can I invest through Phillip Securities?
For funds’ details, please visit our website
12. How can I know the unit trust price?
For details of unit trust price, please visit our website or login POEMS.
13. How are unit trust prices calculated?
Normally, a unit trust would either quote in NAV or bid/offer:
1) Net asset value = total value of underlying investments less all expenses including management fee
2) Offer price (price at which you buy) = (Net asset value/no. of units) + front end fee
Bid price (price at which you sell) = (Net asset value/no. of units) - redemption fee, if applicable.
1) Net asset value = total value of underlying investments less all expenses including management fee
2) Offer price (price at which you buy) = (Net asset value/no. of units) + front end fee
Bid price (price at which you sell) = (Net asset value/no. of units) - redemption fee, if applicable.
14. How to trade unit trust with us?
- Login POEMS
-Contact your account executive.
-Contact us 2277-6777.
-Download the investment form of unit trusts from our website, complete and fax it to 2287-4554.
**Investors must have a Phillip account.
-Contact your account executive.
-Contact us 2277-6777.
-Download the investment form of unit trusts from our website, complete and fax it to 2287-4554.
**Investors must have a Phillip account.
15. What is the cut off time if I place my order for Unit Trusts?
The cut off time for different fund houses are NOT the same, mostly at 15:00. Please visit our website or contact us for details.
16. Where is my transaction status?
For records of the transaction, please click here. The monthly statement would also show the transaction status.
17. What types of unit trust will suit me?
After considering your personal situation, you could choose the most suitable fund. We also provide you the monthly fund focus.
18. What is the share Mortgage Scheme?
Joining Phillip share Mortgage Scheme, customer can purchase funds from a designated fund list at market price by just deposit 30% of the value of the intended fund (minimum HK$30,000). The remaining 70% of the investment amount will be financed by Phillip. Interest rate of this scheme is fixed rate. There is 1% one-off handling fee (base on investment amount). For details, please click here.
19. How can I purchase funds through Share Mortgage Scheme?
Client joining the scheme should open Share Mortgage Scheme Account. Click here to download the application form for Share Mortgage Scheme Account. Complete and submit the form along with the fund investment form to your account executive.
20. How to calculate the repayment and interest amount after purchase funds through Share Mortgage Scheme？
Client could calculate the repayment amount through Repayment Calculator.
- 基金格價及收益可升亦可跌，投資者需要注意基金之風險
- 投資前請閱讀基金買賣說明書及有關文件了解買賣之事項
- 以上資料只作參考並不用成投資決定的指引或邀請
- 本公司保留更改以之上安排之決定
