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Electronic trading system, provides HK Futures, Index Options & Global Futures trading service.
 


Online trading system, provides HK Stocks, US Stocks, Taiwan Stocks, China B-shares & Mutual Fund trading service.    Trading Demo
 


Mobile trading system, provides
HK Stock trading service.
 
   


Electronic trading system, provides HK Stock Option trading service.
 


Electronic trading system, provides HK Stock trading service and streaming quotes.
 


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FundSMART
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Asset allocation fund

A fund which invests in several asset classes, such as government and corporate bonds, equities, money market instruments. Funds are switched between different investments depending on the fund manager's view of the outlook for those asset classes.

Area

The geographical area in which the fund invests. The investment area is specified in the fund prospectus. The fund manager will normally have some discretion over the proportion of the fund invested in each market, but, for example, a "Japan" fund should normally have the majority of its assets invested in Japan.

Derivative

A financial instrument whose value is based on, or "derived" from, another security, or index. Examples of derivatives are warrants, futures and options contracts.

Diversification

One of the main benefits of mutual funds is that investments are spread, or diversified, across a wide range of stocks. This reduces the volatility of risk of the fund without reducing its investment returns.

Dollar cost averaging

A method of investing that calls for the investment of a set dollar amount at regular intervals, regardless of the fund's share price. As a result, more fund shares are bought when prices are low than at high prices, usually bringing down an investor's average cost per share over time. Dollar cost averaging does not, however, guarantee a profit or protect against a loss.

Equity

Shares of a company, that are usually traded on a stock market, which entitle the owner to a share of the profits and the assets of the company.

Fixed income

Securities issued by governments or corporations, which pay a fixed coupon at regular intervals and repay principal on maturity.

Fund size

The value of all assets owned by the fund less liabilities. Smaller funds will be able to invest, sell or switch funds quickly, but may be more expensive due to a relatively high level of fixed costs.

Fund manager

The company responsible for investment decisions concerning the allocation of fund assets and management of the fund.

Index fund

A mutual fund which invests in all of the stocks, in the same proportion, as those which make up a stock market index such as the Dow Jones Industrial Index or the Hang Seng Index. The fund performance will closely track that of the index. Charges for these funds are normally lower than for actively managed funds.

Money market

Cash or short term deposits. Money market funds are normally used as a place to "store" funds between investment. These funds often provide higher rates of return than bank deposits.

Mutual fund

A pooled investment, in which several people give their money to a professional fund manager to invest in return for a fixed annual fee. The money will be invested in a range of different types of assets. The assets in which the fund can invest are clearly stated in the fund Prospectus.

Net asset value (NAV)

The current market worth of a mutual fund's share. A fund's net asset value is calculated daily by taking the funds total assets, securities, cash and any accrued earnings, deducting liabilities, and dividing the remainder by the number of shares outstanding.

Prospectus

The legal document describing how the fund assets will be invested and managed, and the terms and conditions under which the fund is sold. The prospects is available from the Fund Manager of from KGI.

Sales charge or Front end load

This is a fee charged by the fund management company to cover marketing and sales expenses. This charge varies from fund to fund but is typically 5% before discounts.

Smaller companies

Equity shares of smaller size companies. Investments in these companies carry a higher level of risk because they are less able to withstand adverse business conditions. These companies also offer the prospect of higher returns because of their greater growth potential.

Smaller companies fund

A mutual fund which invests in smaller companies, defined either by their market capitalization or market position (ie the smallest 20% of listed companies). Investment in smaller companies caries a higher level of risk, but also provides more potential gains.

Switching

This is the transfer of money from one fund to another fund managed by the same management company. Normally the sales fee or front end charge is much lower or is waived entirely by the manager.

Unit trust

A unit trust is another name for a mutual fund. The term "unit trust" is normally used in the UK whilst "mutual fund" is an American term.

Yield

Current annual income from a fund or other investment, expressed Current income (interest or dividends) paid by a fund, expressed as a percentage of the investment's price.