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Which fund is better and at what price to buy?

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  1. #1

    Join Date
    Sep 2005
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    iFund.com safe to use for long-term fund investment?

    I plan to buy a fund for long-term investment. However, the subscription fee is high in the bank. iFund.com.hk is much lower but is it safe? What happens to my fund investment if this company close down?

    Last edited by stanleystanley; 05-04-2019 at 06:34 AM.

  2. #2

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    Sep 2005
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    Which fund is better and at what price to buy?

    I plan to buy Allianz Income and Growth or Value Partners Greater China High Yield Income Fund for long-term investment (ten years or more). Both have a very high-risk rate. Which one is better and to buy at what price? I will buy the ACC one. The interest rate is 8-9% per month. Does any fund have a higher interest rate than these two?

    Originally I prefer Value Partner but Dato' Seri Cheah Cheng-hye tried to sell Value Partner last year.

    The Stock market may be more valuable if I spend lots of time on it.


  3. #3

    Join Date
    Dec 2018
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    514
    Quote Originally Posted by stanleystanley
    I plan to buy Allianz Income and Growth or Value Partners Greater China High Yield Income Fund for long-term investment (ten years or more). Both have a very high-risk rate. Which one is better and to buy at what price? I will buy the ACC one. The interest rate is 8-9% per month. Does any fund have a higher interest rate than these two?

    Originally I prefer Value Partner but Dato' Seri Cheah Cheng-hye tried to sell Value Partner last year.

    The Stock market may be more valuable if I spend lots of time on it.
    There are others who are far more knowledgeable about funds than I am, but any fund or other investment offering 8-9% per month sets off alarm bells for me - possibly you mean 8-9% per annum?

    In any event, I would start by looking at the expense ratios generally the lower the cost the better and then take a look at what the fund invests in and whether it uses leverage before deciding if it is right for me.

  4. #4

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    Hi stanleystanley,

    I strongly suggest you educate yourself some more before investing as I'm not sure you understand certain basic concepts or else it was just your wording.

    Allianz Income & Growth and Value Partners Greater China High Yield Income Fund are two totally different funds. Allianz's fund invests in stocks and bonds in US & Canada while Value Partners's invests only in Greater China bonds. So you're trying to compare apples to oranges. Which one is better for you depends on what you are looking for in terms of risk, capital growth, dividends and volatility.

    Please note annualized dividend yields are calculations based on their last 12 months dividend payments compared to the fund's present value. One way that number goes up is that they pay more dividends. Another is that the fund's value falls. Dividend payments are not set in stone and bonds may default.

    Just because a bond fund has a higher dividend yield doesn't make it better than another. More often than not it has a higher dividend yield because it's more risky.

    Hope this helps

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  5. #5

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    Mar 2006
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    If it's operated properly then client funds are segregated from the company's funds. In other words your fund investment will remain in the fund even if iFund closes down. Unless there's been some financial mishandling which hopefully won't happen as they have a SFC licence.

    As you're looking at iFund I also suggest you look at Fundsupermart: https://secure.fundsupermart.com.hk/fsm/home At least their fees are more transparent and don't require you to sign up before you can see their fees & charges

    stanleystanley likes this.

  6. #6
    bdw
    bdw is offline

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    I use Standard Chartered and was able to negotiate the subscription fee down to 1% for all funds (normally up to 5% or I think around 3% on their online banking website)


  7. #7

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    Sep 2005
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    U may try harder to get 0.5%


  8. #8

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    Quote Originally Posted by chris_in_hk
    If it's operated properly then client funds are segregated from the company's funds. In other words your fund investment will remain in the fund even if iFund closes down. Unless there's been some financial mishandling which hopefully won't happen as they have a SFC licence.

    As you're looking at iFund I also suggest you look at Fundsupermart: https://secure.fundsupermart.com.hk/fsm/home At least their fees are more transparent and don't require you to sign up before you can see their fees & charges
    I like FSM but I cannot find Allianz Income & Growth and Value Partners Greater China High Yield Income Fund in their site.

  9. #9

    Join Date
    Feb 2019
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    167

    If you're investing long term, worth considering using the new TVC tax-deductible MPF contributions... You can offset up to HKD60k of contributions and not pay tax on that income.

    Hard to beat an upfront 15% tax saving!


  10. #10

    Join Date
    Dec 2018
    Posts
    514
    Quote Originally Posted by GentleGeorge
    If you're investing long term, worth considering using the new TVC tax-deductible MPF contributions... You can offset up to HKD60k of contributions and not pay tax on that income.

    Hard to beat an upfront 15% tax saving!
    Possibly true - yes we save 15% through he deduction but that's a one time benefit and the ridiculously high MPF fees and expenses (compared in an index ETF) are a drag on performance every year. This was discussed on another thread although I can't remember if a consensus conclusion was reached.

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