Investing in Managed Funds

• What are Managed Funds and how does mFunds work?
  
  Managed funds pool the money of individual investors and the combined capital is invested by a fund manager across a range of asset classes (e.g. shares, property and bonds).

  The ASX mFund Settlement Service is a new way to buy, hold and sell units in unlisted managed funds. Managed fund units are not directly traded on ASX, instead the investment and redemption process is facilitated by the settlement system CHESS.

  Benefits of the mFund service include:

  • No paper work is required to buy or sell managed funds. You simply enter your instructions online through the Managed Funds order pad.
  • Ability to view your current Managed Fund holdings on your portfolio.
  • Obtain buy and sell prices of units close to real time.
• What documentation do I need to read and sign/acknowledge?
  
  A Fund Profile and Product Disclosure Statement or Combined Product Disclosure Statement (as applicable) will be displayed under managed funds order pad. You are required to read and acknowledge both documents before buying or switching managed funds.
• Is there a minimum purchase/redemption amount?
  
  Yes, every managed fund product has a minimum purchase amount which is outlined in Product Disclosure Statement. The managed fund order pad will check that your buy or switch instruction meets the minimum investment amount.

  There is no minimum redemption amount set to sell an managed fund product.
• Can I make regular contributions into a managed fund that I already own with HSBC Online Share Trading?
  
  No
• How do I buy managed funds?
  
  Login into HSBC Online Share Trading website to research mFund products from Managed funds page, read fund profile and product disclosure statement before you start invest on managed fund.

  You can buy managed funds on the order pad by clicking on the quick link 'Trade' icon and choose managed funds order pad.

  Enter managed fund code or select code from the managed fund providers list to place a buy order.
• How do I sell managed funds?
  
  When you have managed fund holding in your trading account, you are required to access managed funds order pad, choose 'Sell' option and enter how much quantity you plan to sell.
• Can I sell holdings in one managed fund and automatically use the money to buy another managed fund from the same managed fund provider?
  
  Yes, you can. In this case, please choose the 'Switch' option in managed funds order pad. You are required to enter the quantity you would like to sell and choose another managed fund under the same managed fund provider that you would like to use all sell proceeds for to purchase.

  The money from sell holding will be automatically used to buy another fund.
• If I sell holdings in a managed fund, can I use the money to buy another managed fund from a different managed fund provider?
  
  The 'Switch' option on the managed funds order pad will only allow you to select a fund from the same managed fund provider. In this case, you need to 'Sell' your managed fund product first. After getting the money from your sell holding, you can then proceed to buy the fund from different managed fund provider.