Technical Savings and Investments Information

Deposit Fund

This is a notional interest bearing fund. Unit offer price of the funds is typically set at HKD1,000. Interest, in the form of units being purchased at the unit offer price, will be credited to the account. This allows the small investors to invest in money market instruments. This is also called money market fund or money fund.

Principal objective: to invest in short-term money markets instruments in order to provide stable income with minimal capital risk
Special features: open-ended; unit offer price remains constant (e.g. HKD1,000); interest credited to the account as units purchased; and participation in short-term investment instruments.
Advantages: the safest, the most stable; higher return than bank deposits; and asset liquidity.
Disadvantages: interest rate may fluctuate; and relatively low return.