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Introduction to mutual funds

A mutual fund is created by the monetary contribution of numerous investors who form a common fortune. Depending on the amount added by each investor, they become owners of a corresponding part of the fortune in the form of units.

Mutual fund management

A mutual fund is usually managed by a team of experienced staff with investment expertise, since most investors do not have the knowledge or the required amount of time to handle the investment appropriately. The fund managers, using advanced equipment, monitor and analyse the stock exchange markets, the bond and money markets, so as to discover and take advantage of investment opportunities in the best possible way. They fully manage the investment on your behalf and so you simply benefit from their knowledge and skills.

Investment risk reduction

Your shares in a mutual fund become part of a larger investment. This allows for you to achieve returns that are better than those you would achieve if you were to independently invest in stocks directly. At the same time, you reduce investment risk since the mutual fund’s fortune is composed of many different investment forms.

Investing in mutual funds

Investing in mutual funds actually means buying units. Your corresponding number of units will depend on the amount of money you wish to hand in for the investment.

HSBC's mutual funds are valued on a daily basis. The net value of each mutual fund is divided by the amount of units, thereby establishing the unit price. This daily valuation brings a daily change in the unit’s price.

When you feel the time is right to liquefy your investment, simply sell your units.

UCITS DO NOT HAVE A GURANTEED RETURN AND PREVIOUS PERFORMANCE DOES NOT GUARANTEE FUTURE PERFORMANCE