It is said that you should invest as early as possible. Are you eager to buy a fund but you heard that the entry fees are too high? As a novice petty bourgeoisie, you are deterred? Let’s dismantle common fund fee myths and help you take the first step in investing easily!


Myth 1: There are many hidden fees involved in buying and selling funds?
Funds have different fees, so before buying and selling funds, you should first understand the basic fees involved. After understanding the various fees, you can then choose a fund that meets your investment budget!


One-time fees for buying and selling funds: subscription fee, redemption fee and switching fee

Whether investors purchase funds through banks, securities firms, fund trading platforms, insurance, etc., they generally need to pay a one-time initial subscription fee or subscription fee as a commission for fund trading services. This fee will be directly derived from the amount of investment. Deducted from the fee, additional charges may also be made. For example, your investment principal is HK$10,000, assuming the initial subscription fee is 1.5%. After deducting the HK$150 subscription fee, the actual investment amount will be HK$9,850.


The redemption fee is the fee paid when selling the fund. As far as Hong Kong is concerned, most fund companies or trading platforms will not charge relevant fees.


As for the conversion fee, as the name suggests, it is the handling fee required when investors want to withdraw the investment amount from the fund they hold and purchase other funds. Citi's conversion fee is generally 1%. Compared with the subscription fee required when purchasing a new fund, the switching fee is relatively affordable.


Ongoing expenses deducted from the total fund amount: management fees and other charges

In addition to the above one-time fees, there will also be ongoing fees when investors hold funds, one of which is management fees. The fund manager and management team will regularly update the asset allocation, and the management fee is the fee paid to the fund company's research team to manage the assets on their behalf, and the fee will continue to be deducted from the total amount of funds held. Other fees, such as custody fees or administrative fees, are also charged in the same way, so the above fees are actually reflected in the total fund amount.


Myth 2: Is it a good idea to enter the fund market?
In the past, I heard people say that investment funds require at least tens of thousands or even hundreds of thousands to buy first. But in fact, many funds have lowered the entry threshold in recent years. Retail investors can get fund managers without expensive investment amounts. Professional analysis and management services from the team. The entry fee for the Citi ® Selected Investment Portfolio is as low as HK$100. Citi’s professional team will analyze and recommend investment portfolios for you. You can easily trade funds at a low cost through the Citi Mobile ® App!


In addition, you can use the "Fund Finder" to find your favorite funds based on fund name, region, industry, type, currency, fund company, etc. The entry threshold is as low as HK$1. Think about it The entire purchase process is up to you! The fees are also quite transparent. The initial subscription fee for subscribing a fund is 1.5%. Before buying your favorite fund, you can also check the relevant documents on the app to learn more about the product information and fees of the fund. You can wait for you at any time. Get the information you need anywhere!


Investing in funds involves risks.