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Unit Trusts
Managing your Unit Trust portfolio through multiple channels
After your initial investment is made you will be free to invest in unit trusts through a number of channels, including:
- HSBC Internet Banking: Buy, sell and switching transactions, set up Monthly Investment Plans and unit trust investment performance monitoring all at the touch of a button
- Phonebanking: Buy*, sell and switching transactions at your convenience
- Branch Nework: Speak to one of HSBC's investment professionals, and let them help you to capture the latest investment opportunities according to your individual needs
*Once you have subscribed to a fund, you can place your future subscription orders by phone for any funds from the respective fund house, provided that you still have holdings of any fund from the fund house at the time of new order placement.
In addition, HSBC will help you to keep track of your investments with:
- Contract notes detailing your transactions every time you buy, switch or sell units
- Regular statements summarising transactions and the value of your portfolio
- Daily prices of unit trusts through this website and our phonebanking service
- Range of regular mailings containing useful information
How do I decide which Unit Trusts to buy?
Different types of unit trusts help meet a variety of investment objectives. Before you select a unit trust, consider the following:
- Set your investment goal: Know what you are investing for, as this will help you determine how much money you need, and when you need it
- Calculate your budget: Work out how much you can reasonably afford to invest. Then decide if you'd like to pay a lump sum, irregular deposits or regular monthly instalments.
- Work out your risk profile: Your risk profile, based on your age, outlook, budget and investment experience, indicates your tolerance for the ups and downs of the market
- Select a Unit Trust: After completing your risk profile, a list of Funds that address your investment needs will be displayed. Before making your selection, be sure to learn about each Fund, and speak with an HSBC investment professional. You may also refer to Funds of the Quarter# for reference.
For more information, please contact your nearest HSBC branch.
Minimum Investment Requirements
For a lump sum subscription or a monthly investment plan, you can choose from a wide range of quality funds from various asset classes managed by different fund houses.
| Investment Method | Minimum Investment |
|---|---|
| Lump sum investment | USD1,000 or HKD10,000 |
| Unit Trust Monthly Investment Plan# | No initial contribution is required. Minimum monthly contribution per fund* is HKD1,000 |
| * Irregular lump sum contributions of a minimum USD1,000 or HKD10,000 per fund can be made.
# The Unit Trust Monthly Investment Plan does not apply to Unit Trusts - the 'No Subscription Fee Series'. |
|
Trading Hours
On business days, same day dealing orders must be placed before 4.00 pm. Orders placed after this time will be processed on the next working day.*
*For non-daily dealing Funds, please refer to prospectus for more details on dealing
Unit Trust Service Charges
For more details on our Unit Trusts services and related charges1, please refer to the table below.
| Service | Rate |
|---|---|
| Subscription2,3 / Redemption / Management / Other fees | Please refer to the respective prospectus of the fund |
| Switching fee4 | i) Up to 1% of switching amount for Class A funds ii) Free-of-charge switching across all funds in the 'No Subscription Fee Series' |
| Administration fee5 | 1% from redemption amount of funds in the 'No Subscription Fee Series', if redemption takes place within 1st investment year |
| Investment order confirmation eAlerts | Free of charge |
| Transfer-out6 | Administration fee of HKD100 per fund transferred |
| Termination of Unit Trust Monthly Investment Plan within 1st year7 | HKD80 per plan |
- The Unit Trusts service charges are applicable to HSBC Premier, PowerVantage and SmartVantage customers and general unit trusts account customers with account number ending with "383".
- For Unit Trust Monthly Investment Plan (UTMIP), a 1% discount on the initial charges for all future monthly contributions will be offered by the Bank after 12 monthly contributions to your UTMIP reaching the total of at least HKD65,000 (including both monthly contributions and irregular lump sum contributions).The UTMIP does not apply to Unit Trusts - the 'No Subscription Fee Series'.
- The Bank will offer 1% reduction on the initial charge for new UTMIP setup via HSBC Internet Banking . This reduction on initial charge offer is only applicable to open-ended funds with initial charge of 5% or above.
- i) Switching is only allowed between two funds of the same fund house. With effect from 1 September 2005, the Bank will levy a switching fee of up to 1% of the switching amount on switching orders of AllianceBernstein funds, BlackRock Global Funds, Investec funds and Prudential Asset Management Funds. For other open-ended funds, please refer to the respective prospectus of the fund for details of the fees and charges
- The administration fee is calculated by reference to either the initial subscription price or the current redemption price (within 1st investment year), whichever is lower.
- Please note that only Transfer-in/ out across same name accounts will be allowed. Please visit any HSBC branch should you wish to place transfer instruction.
- For termination of a UTMIP within first year of set-up, an administration fee of HKD80 will apply and will be charged against your default settlement account when your termination instruction is processed. This administration fee does not apply to a UTMIP with scheduled number of monthly investment contributions of 12 or less and thus scheduled termination within the first year of set-up.
ii) No switching fee is required for switching between funds in the 'No Subscription Fee Series' within the same fund house or to other funds in the 'No Subscription Fee Series' managed by different fund house.
Investment involves risk. Investors should refer to the offer documents for further fund details and the risks involved.
Dollar Cost Averaging
With a Monthly Investment Plan, you will invest over a period of time and acquire units at different prices. When the unit trust prices go down, your monthly contribution buys more units. When the price goes up, fewer units will be bought, but your total unit trust portfolio holding will benefit from the rising market. Over time, the average price that you have paid for units is likely to be lower than the market price because you will have bought more units at lower prices.
This investment method is called dollar cost averaging, and it enables you to buy unit trusts at close to their average price over a period if time. It helps smooth out the peaks and troughs, offsetting market volatility, so the risk arising from short-term market fluctuations will be reduced.
HOW THE UNIT TRUST MONTHLY INVESTMENT PLAN WORKS
| Month | Investment (HKD) | Unit price (HKD) | Number of units |
|---|---|---|---|
| January | 1,000 | 1.00 | 1,000 |
| February | 1,000 | 0.89 | 1,124 |
| March | 1,000 | 0.90 | 1,111 |
| April | 1,000 | 1.01 | 990 |
| May | 1,000 | 1.08 | 926 |
| June | 1,000 | 0.96 | 1,042 |
| 0.973 (average market price)* |
In the above example, you invest a total of HKD6,000 to purchase 6,193 units over six months at an average unit cost+ of HKD0.969. Dollar Cost Averaging therefore enables you to buy units lower than the average market price of HKD0.973 over the period.
The figures provided in this example are for illustrative purposes only and are not indicative of the actual result of the investment.
*average market price = sum of unit prices ÷ number of periods
+average unit cost = total investments ÷ total number of units purchased
Disclaimer:
# "Fund Navigator" is a document which comprised of "Funds of the Quarter" which is a list of funds selected base on quantitative and qualitative evaluations of the funds' past performance and "Fund Flash" that highlights fund categories and funds available in HSBC as examples for reference. "Fund Navigator" should not be considered as buy or sell recommendations. Past performance is no guide to future performance. Content of "Fund Navigator" is updated on a quarterly basis. Please click on "Funds of the Quarter" for more details.
Investment involves risk. Please refer to the offering documents of the respective funds for details, including risk factors. The price of units or shares and the income from them may go down as well as up and any past performance figures shown are not indicative of future performance. The information contained on this website is intended for Hong Kong residents only and should not be construed as a distribution, an offer to sell, or a solicitation to buy any securities in any jurisdiction where such activities would be unlawful under the laws of such jurisdiction, in particular the United States of America. Please refer to the Unit Trust disclaimer for further important details.
Unit Trusts are investment products and some may involve derivatives. The investment decision is yours but you should not invest in the Unit Trusts unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation, investment experience and investment objectives.
Unit Trusts are NOT equivalent to time deposits.
In the worst case scenario, the value of the unit trusts may be worth substantially less than the original amount you have invested.
