Funds

Funds, which includes mutual funds and unit trusts, gather money from many investors to make investments.

Your money is pooled with other investors into stocks, bonds and similar assets. A fund manager chooses the investments and each investor owns a proportion of the total fund, according to how much money is put in.

Usually, the fund invests in dozens of securities. This spreads the risk. Some funds are high risk, while others are lower risk, depending on the investment goal.

Investing in funds involve fees, for example subscription fee, annual management fee and switching fee.

You should always read the fund's offering document and product key facts statement before making a decision. This gives such details as the investment goal, strategy, risks, fees and procedures.

To learn more, see the following sections.