When you invest in funds, your money is combined with the money of other investors and used to buy stocks, bonds, and other assets. This is done to spread risk and to make it easier for individual investors to access a diverse range of investments. The fund manager is responsible for choosing which investments to make, and each investor owns a proportion of the total fund based on how much money they have invested.

Funds can be high-risk or low-risk depending on the investment goal, and they often invest in dozens of different securities to further spread risk. Investing in funds typically involves paying fees, such as subscription fees, annual management fees, and switching fees. It is important to carefully read the fund's offering document and product key facts statement before making a decision, as these documents will provide important information about the fund's investment goals, strategies, risks, fees, and procedures.

Let us learn some more via these additional information below:

Basics

• Who manages funds?
• Fund authorization

Key Messages

• Managers of authorised funds must always act in the best interests of the fund's investors
• A fund's assets must be held by a trustee or custodian who is independent of the fund manager and acceptable to the SFC or suitable authority in your own country.
• Additionally, the assets of the fund must be segregated from the assets of the trustee or custodian, and neither the fund manager nor the trustee/custodian can use the fund's assets for their own benefit or to repay their own debts.
• These rules are in place to protect the interests of investors in the fund and ensure that their assets are managed in a responsible and transparent manner.

In order for a fund to be authorized, it must have a fund manager, trustee, and/or custodian who are acceptable to the SFC or suitable authority in your own country. This means that the SFC or suitable authority in your own country must review and approve the individuals or organizations that will be responsible for managing the fund and overseeing its assets. This is done to ensure that the fund will be managed by experienced and qualified individuals who are capable of acting in the best interests of the fund's investors. The presence of an independent trustee or custodian also helps to ensure that the fund's assets are properly safeguarded and managed in accordance with the rules and regulations set forth by the SFC or suitable authority in your own country.

Who are these fund managers?

A fund manager must meet several requirements in order to be acceptable to the SFC or suitable authority in your country. These requirements include being engaged primarily in the fund management business, having sufficient financial resources, proper internal controls, and written compliance procedures, and ensuring that the company's directors and key personnel have sufficient experience in managing the same kind of fund. These requirements are in place to ensure that the fund manager has the necessary expertise, resources, and controls to effectively manage the fund and act in the best interests of its investors.

How are fund managers supervised?

If a fund manager is based in Hong Kong, they may be required to be licensed by the SFC depending on the nature of their business. A licensed fund manager must comply with the relevant provisions of the Securities and Futures Ordinance and the Fund Manager Code of Conduct. These regulations provide guidance on the organization structure, staff ethics, fund management, operations, and client dealings of the fund manager. Agreements between foreign authorities and the SFC also ensure that there is timely exchange of information related to overseas-domiciled fund managers who manage authorised funds. Overseas fund managers without branch offices in Hong Kong must appoint Hong Kong representatives to act as a liaison with Hong Kong investors and the SFC. Additionally, individuals who manage the subscription and redemption activities of funds in Hong Kong must also be licensed by the SFC.

Remember that the authority supervising it will be different in each country of origin where the businesses are being held.

How do I know if fund managers put my interests before their own?

The Fund Manager Code of Conduct is a set of guidelines that outlines the ethical and professional standards that fund managers are expected to follow. One of the key principles of the code is that fund managers should always put the interests of their investors first, and they should execute orders on behalf of the funds they manage on the best available terms in the market. Additionally, fund managers are required to give priority to orders for the funds they manage over orders for their own accounts. Failure to follow the code of conduct can result in the loss of a fund manager's Hong Kong registration. This is why it is important for fund managers to carefully follow the code of conduct in order to maintain their registration and continue to operate in Hong Kong.

Remember that the Code of Conduct will also be different in each country of origin.

What happens to a fund if its fund manager has financial problems?

The trustee or custodian of an authorized fund is responsible for holding custody of the fund's assets. This means that the trustee or custodian is responsible for safeguarding the assets of the fund and making sure that they are managed in accordance with the rules and regulations set forth by the SFC. A fund manager is not allowed to use the assets in a fund to solve its own financial problems, and if a fund manager is in financial trouble or is deemed unfit to continue managing the fund, the trustee of a unit trust or the directors of a mutual fund must dismiss the fund manager and appoint a new one. The SFC is immediately notified of the change, and they will monitor the appointment of the new fund manager to ensure that the fund continues to be managed in a responsible and transparent manner.

Remember that SFC will be represented by different body in other country of origin.

Who can be a trustee / custodian?

In order to be acceptable to the SFC, the trustee or custodian of an authorized fund must be independent of the fund management company. This means that the trustee or custodian must not have any financial or personal ties to the fund manager that could compromise their ability to act in the best interests of the fund's investors. The trustee or custodian can be a bank, a registered trust company, or a bank or trustee company incorporated outside of Hong Kong. These organizations must meet certain minimum capital and reserve requirements, and they are subject to ongoing regulatory supervision or independent audits to ensure that they are properly managing the assets of the fund. This helps to protect the interests of investors and ensure that their assets are managed in a responsible and transparent manner.

Remember that SFC will be represented by similar body in other country of origin. Also usually there will be different set of requirements that must be met with each country.

It is important to remember that a fund's assets must be kept separate from the assets of its trustee or custodian. This means that the assets of the fund must be clearly distinguished and accounted for, and they must not be commingled with the assets of the trustee or custodian. Additionally, the trustee or custodian is prohibited from using the assets of the fund for their own benefit or to repay their own debts. This is to ensure that the assets of the fund are properly safeguarded and used only for the benefit of the fund's investors. Ensuring the segregation of assets and prohibiting the misuse of the fund's assets are critical safeguards that help to protect the interests of investors and promote transparency in the management of the fund.

Why we should Invest

There are several reasons why investing is important. Firstly, investing can help to grow and protect wealth over the long term. By investing in a diverse range of assets, such as stocks, bonds, and real estate, investors can take advantage of the potential for returns and mitigate the impact of market volatility. This can help to grow wealth and provide a cushion against unexpected events or economic downturns.

Secondly, investing can help to provide financial security and independence. By building a diversified investment portfolio, investors can create a stable source of income that can help to support them in retirement or provide financial independence. This can help to reduce reliance on a single income source and provide greater financial security and flexibility.

Thirdly, investing can help to support economic growth and development. By investing in businesses and organizations, investors can help to provide capital for growth and expansion. This can create jobs, drive innovation, and contribute to the overall health and prosperity of the economy.

Overall, investing is important for growing and protecting wealth, providing financial security and independence, and supporting economic growth and development. It can also help individuals to achieve their financial goals and provide peace of mind.

The importance of starting early

Starting to invest as early as possible has several benefits. Firstly, it allows investors to take advantage of the power of compound interest. This means that any returns earned on an investment, such as interest or dividends, are reinvested and can generate additional returns over time. The longer an investment is held, the more time it has to compound and grow, which can result in significant returns over the long term.

Secondly, starting to invest early provides more time to weather market ups and downs. The financial markets are volatile and can experience periods of both gains and losses. By starting to invest early, individuals have more time to ride out market downturns and recover from any losses. This can help to provide a more stable and consistent investment experience over the long term.

Thirdly, starting to invest early can help individuals to achieve their financial goals more easily. For example, saving for retirement or a child's education can be challenging, but starting to invest early can help to make these goals more attainable. By starting to invest early, individuals can take advantage of the potential for returns and the power of compound interest to grow their wealth and achieve their financial goals.

Overall, starting to invest as early as possible allows individuals to take advantage of the power of compound interest, provides more time to weather market ups and downs, and can help to achieve financial goals more easily.

So here are top five of basic concepts that we must know before we start our very first journey in investing world.

Risk and return

It's important to understand that return and risk are closely linked in the world of investing. In general, the potential for higher returns is accompanied by an increased level of risk. This means that investors need to carefully consider their goals, investment period, and risk tolerance when choosing an investment. Pursuing high-return investments without considering the level of risk can be dangerous and can lead to significant losses.

It's essential for investors to choose an investment that is suitable for them based on their individual circumstances and goals. This may involve balancing the potential for returns with the level of risk, as well as considering factors such as the investment period, the level of liquidity, and the potential for volatility. By choosing an investment that is suitable for them, investors can increase their chances of success and avoid taking on more risk than they are comfortable with.

Overall, it's important to understand that return and risk are closely linked, and that investors need to carefully consider their goals, investment period, and risk tolerance when choosing an investment. By doing so, they can increase their chances of success and avoid taking on more risk than they are comfortable with.

Risk diversification

Risk is an inherent part of investing, and it's impossible to completely avoid it. However, investors can manage their risk exposure and reduce the chances of major losses by using the right strategies. One of the simplest and most effective ways to manage risk is to diversify your investments and spread your risk across different asset classes. This means investing in a variety of different assets, such as stocks, bonds, deposits, and real estate, instead of putting all your money into a single asset or investment.

Diversification can help to reduce the impact of volatility and market downturns on your investment portfolio. This is because different asset classes tend to perform differently in different market conditions. For example, stocks may decline in value during a recession, while bonds may hold their value or even increase in value. By investing in a mix of assets, investors can take advantage of the potential for returns while reducing the impact of market volatility on their overall portfolio.

Additionally, diversification can help to reduce the overall level of risk in an investment portfolio. This is because different assets have different levels of risk, and by investing in a mix of assets, investors can reduce their exposure to any single asset or investment. This can help to reduce the chances of major losses and provide a more stable and consistent investment experience over the long term.

Overall, diversification is an effective way to manage risk and reduce the chances of major losses. By investing in a mix of different assets, investors can take advantage of the potential for returns while reducing their exposure to volatility and market downturns. This can help to provide a more stable and consistent investment experience and increase the chances of success over the long term.

Dollar-cost averaging

Dollar cost averaging is a long-term investment strategy that involves regularly investing a fixed amount of money in a particular security, such as a stock or mutual fund. This strategy is based on the idea that by investing a fixed amount of money at regular intervals, investors can take advantage of short-term market fluctuations and balance out the cost of purchasing shares.

For example, if an investor wants to invest $100 per month in a particular stock, they can set up a regular investment plan with their broker or financial advisor. Each month, the broker will automatically invest the fixed amount of money in the stock at the current market price. Over time, this can help to balance out the cost of purchasing shares and reduce the impact of short-term market fluctuations.

One of the main benefits of dollar cost averaging is that it can help investors to manage their risk and avoid making impulsive decisions based on short-term market movements. By investing a fixed amount of money at regular intervals, investors can avoid trying to time the market and take advantage of dips and spikes in share prices. This can help to reduce the chances of making costly mistakes and increase the chances of success over the long term.

Overall, dollar cost averaging is a long-term strategy that involves regularly investing a fixed amount of money in a particular security. This can help to balance out the cost of purchasing shares and reduce the impact of short-term market fluctuations, which can increase the chances of success and reduce the overall level of risk.

Compound Interest

Compound interest is the interest that is earned on both the principal amount invested and the accumulated interest from previous periods. This means that as an investment grows and earns interest, the principal amount also grows, resulting in even higher returns in the future. This is known as the snowball effect, as the longer an investment is held, the more it benefits from compound interest.

For example, if an investor invests $100 at an annual interest rate of 5%, they will earn $5 in interest during the first year. If they leave the interest in the investment and don't withdraw it, they will earn interest on the original $100 plus the $5 in interest from the previous period, for a total of $105. In the second year, the investment will earn $5.25 in interest, and so on. As the investment continues to grow and earn interest, the returns will become larger and larger over time, resulting in a higher overall return.

One of the main benefits of compound interest is that it allows investors to earn higher returns without having to invest additional money. By leaving the interest in the investment and allowing it to compound, investors can take advantage of the snowball effect and grow their wealth over the long term. This is why it's important to start saving and investing early, as the longer an investment is held, the more it will benefit from compound interest.

Overall, compound interest is the interest earned on both the principal amount invested and the accumulated interest from previous periods. This results in a snowball effect, where the longer an investment is held, the more it benefits from compound interest and the higher the overall return. By starting to invest early and taking advantage.

Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, and the purchasing power of currency is falling. Inflation can have a significant impact on investments, as it reduces the purchasing power of money over time. This means that if an investment does not earn a return rate that matches or beats inflation, the money invested will be worth less in the future.

For example, if the inflation rate is 3% and an investment earns a return rate of 2%, the purchasing power of the investment will decline over time. This is because the value of the money invested will not keep pace with the rising prices of goods and services, and the investment will not be able to maintain its purchasing power. In this case, the investor would be better off investing in an asset that earns a return rate higher than the inflation rate, such as stocks or real estate, in order to protect their purchasing power.

In the past few decades, there has usually been some level of inflation in Hong Kong, and this trend is expected to continue in the future. This means that investors need to be aware of the impact of inflation on their investments and choose assets that have the potential to earn a return rate that matches or beats inflation. By doing so, they can protect the purchasing power of their money and increase the chances of success over the long term.

Summary

• Return and risk are closely linked, and investors need to carefully consider their goals, investment period, and risk tolerance when choosing an investment.
• Diversification is an effective way to manage risk and reduce the chances of major losses.
• Dollar cost averaging is a long-term strategy that involves regularly investing a fixed amount of money in a particular security.
• Compound interest allows investors to earn higher returns without having to invest additional money.
• Inflation can have a significant impact on investments, and investors need to choose assets that have the potential to earn a return rate that matches or beats inflation.

So let us embark with our investing journey and hopefully we can all have a safe and wondrous journey ahead.

There are quite a lot of factors why usually a trader or investor in general failing to achieve success when facing the market. Here we will provides 10 of them which usually happens to most of them.

Lack of knowledge

Many traders, unfortunately, enter the market without a solid understanding of its workings and the necessary skills and strategies to be successful. This lack of knowledge often leads to costly mistakes and quick losses. It's essential for traders to educate themselves on the market and develop a thorough understanding of its mechanics in order to avoid these common pitfalls. A lack of knowledge can be detrimental to a trader's success and it's important to continuously seek out new information and learning opportunities in order to improve. By investing in their education and gaining a deeper understanding of the market, traders can increase their chances of success and avoid making costly mistakes.

Poor risk management

Risk is a natural part of trading and cannot be avoided. However, it's crucial for traders to have a clear and effective risk management strategy in place in order to protect their capital and maximize their chances of success. Without a solid plan for managing risk, traders are more vulnerable to significant losses. This is because they may take on too much risk in a single trade or fail to adequately diversify their portfolio, which can lead to outsized losses in the event of market volatility or unexpected events. Developing a risk management strategy that suits an individual trader's unique needs and goals is essential for mitigating the risks of trading and increasing the chances of success. This may include setting clear stop-losses, diversifying investments, and limiting the amount of capital at risk in any given trade.

Emotional decision-making

Emotions can play a significant role in trading and it's not uncommon for traders to experience strong emotions such as fear, greed, or excitement while making decisions. However, allowing emotions to dictate trading decisions can be dangerous and often leads to poor outcomes. Many traders make poor decisions when they are overwhelmed by their emotions, leading to significant losses. It's important for traders to recognize the role that emotions play in their decision-making and to develop strategies for managing and controlling them. This may include setting clear rules and guidelines for making trades, using risk management tools to limit the impact of emotions, and practicing mindfulness and emotional regulation techniques. By taking steps to manage emotions and make decisions based on rational analysis, traders can avoid making costly mistakes and increase their chances of success.

Lack of discipline

Discipline is a crucial trait for successful traders, but many struggle to maintain it, particularly in volatile or challenging market conditions. Without discipline, traders may deviate from their plan and make impulsive or emotional decisions, which can lead to losses. Developing a system that promotes discipline and makes it easier to stick to a plan is essential for successful trading. This may include setting clear rules and guidelines for making trades, implementing risk management strategies, and regularly reviewing and adjusting the plan as needed. By creating a system that is easy to follow and stay compliant with, traders can improve their chances of success and avoid the common pitfalls of undisciplined trading.

Over-trading

Over-trading is a common mistake made by many traders, and it refers to taking on too many trades without allowing them to play out properly. This can lead to increased risk, higher brokerage costs, and a higher likelihood of losses. To avoid over-trading, it's important for traders to clearly articulate their trading setups and criteria for taking trades. This can help to separate good opportunities from poor ones and allow for a more disciplined and thoughtful approach to trading. By avoiding over-trading, traders can reduce their risk, lower their costs, and increase their chances of success. Additionally, it's important to remember that not all trades will be successful, and it's better to focus on quality over quantity when it comes to taking trades.

Lack of a trading plan

Having a clear trading plan is essential for successful trading. A trading plan provides a set of rules and guidelines to follow when making decisions, which can help to prevent impulsive or emotional trading. Without a plan, traders may make rash decisions based on their emotions, which can be dangerous and often lead to losses. A well-defined trading plan should include criteria for entering and exiting trades, risk management strategies, and a plan for reviewing and adjusting the plan as needed. By creating a trading plan and sticking to it, traders can improve their chances of success and avoid making costly mistakes. It's also important to regularly review and update the plan to ensure that it remains relevant and effective in the changing market environment.

Not keeping up with important data and information

The financial markets are constantly changing and evolving, and it's important for traders to stay up-to-date with the latest developments in order to make informed decisions. This may include keeping track of economic indicators, market news, and any changes in market conditions that could affect a trader's investments. By staying up-to-date, traders can gain a better understanding of the market and its movements, which can help them make more informed and strategic decisions. Additionally, staying up-to-date can help traders to identify new opportunities and avoid potential pitfalls. It's important to regularly monitor market developments and adjust a trading plan as needed in order to remain competitive and successful in the market.

Not cutting losses quickly

It's impossible for traders to avoid making losses completely, but the key is to minimize their impact on the overall account. One of the best ways to do this is to cut losses quickly when a trade goes against the trader. This can help to limit the damage and prevent small losses from turning into larger ones. However, many traders hold onto losing trades for too long, hoping that they will recover and turn into profitable trades. This is known as "averaging down" and it can be dangerous, as it often leads to larger than expected losses. By cutting losses quickly and avoiding the temptation to average down, traders can minimize the impact of losses on their account and increase their chances of success.

Not maximizing profits

In addition to cutting losses quickly, it's also important for traders to maximize their winners. This means taking profits when they are available and not holding onto winning trades for too long in the hopes of even larger gains. Many traders fail to do this, either because they don't have a plan in place for exiting trades or because they get greedy and hold onto winners for too long. As a result, they may miss out on potential profits and leave money on the table. Developing a plan for taking profits and exiting winning trades is essential for successful trading. This may include setting profit targets, using trailing stop-losses, or using other risk management tools to protect profits and maximize gains. By maximizing winners and cutting losses quickly, traders can improve their overall performance and increase their chances of success.

Not Adapting

Adaptability is essential for success in the financial markets, as market conditions are constantly changing and evolving. This means that what works today may not work tomorrow, and traders need to be able to adapt in order to remain successful. This may involve regularly reviewing and adjusting a trading plan, switching between different strategies, or incorporating new tools and techniques. By being willing to adapt, traders can increase their chances of success and avoid getting phased out of the market. It's important to remember that no trading strategy is perfect, and even the best strategies will experience periods of underperformance. By being adaptable and willing to make changes as needed, traders can improve their chances of success and maintain a competitive edge in the market.

Conclusion

The majority of traders fail to succeed in the market due to a lack of preparation for the challenges they will face. This may include a lack of knowledge and understanding of the market, poor risk management, emotional decision-making, lack of discipline and a clear trading plan, over-trading, failure to stay up-to-date with market developments, not cutting losses quickly, not maximizing winners, and inability to adapt to changing market conditions. By educating themselves and developing a solid trading plan that takes these challenges into account, traders can improve their chances of success and avoid common pitfalls. This may involve regularly reviewing and updating the trading plan, staying up-to-date with market developments, and being willing to adapt as needed in order to remain competitive and successful in the market.

Introduction: What is the Stock Market?

The stock market is a place where companies can buy and sell stocks, bonds, and other securities. The prices of these assets are determined by supply and demand. If there is an increase in demand for a certain product or service then the price will go up as well.

The stock market is also known as the "share" or "equity" market because it deals with ownership shares of publicly traded companies.

What are Stocks?

Stocks are a type of security that represents ownership in a company, and the value of the stock may rise or fall depending on how well the company performs. There are many different types of stocks available to investors, each with its own distinctive features.

Investors invest money into stocks by purchasing them from brokers or through their brokerage account. The purchase price is called “the share price” and it fluctuates based on supply and demand for that particular stock.

How To Make Money Trading Stocks?

Trading stocks is not as easy as it may seem. There are many things to take into consideration before you start trading. You need to know how the stock market works, how to read charts and graphs, and how to trade on an online platform.

Social Media Investing - The Next Big Thing in the Stock Market!

Investing in the stock market is not just a game of chance. Investing in stocks is a way to make money, but it’s also an art that can be mastered if you know what you’re doing.

There are many different ways to invest in the stock market, and some of them are more risky than others. One of the latest trends sweeping Wall Street is investing in social media stocks. There are many reasons why these stocks might be good investments, but there are also reasons why they might not be such good investments.

What is a Good Strategy to Survive in the Stock Market Long-Term?

Strategies for surviving in the stock market are always changing. No one can tell you what will happen in the future, but there are some rules that should be followed to make sure that you survive in any market condition.

1. Have a diversified portfolio: This means that your portfolio needs to have a variety of stocks and bonds. If you only invest in one or two stocks, then you are risking it all on those two stocks and if they go down, then your whole portfolio will go down with them.

2. Invest for the long-term: The stock market is unpredictable, so there is no way of telling when it will be up or down. But by investing for the long-term, you are making sure that your money is invested for a longer period of time so that even if it goes down for a while, it should eventually go back up and recover what was lost during the downturns.

3. Keep an eye on your investments

What are the Risks Associated with Investing in Stocks?

There are many risks that come with investing in stocks, and it is important to be aware of these risks before you invest.

Some of the most common risks associated with investing in stocks include:

• The risk of losing money because a stock will go down, or the risk of not being able to sell your shares when you want to

• The risk that a company will go bankrupt and not pay dividends

• The risk that a company’s shares will be diluted by an increase in the number of outstanding shares

How Do I Make Money by Buying and Selling Shares of a Company's Stock?

Buying and selling stocks is a way to make money from your investments. When you buy stocks, you're buying shares of a company's stock. When you sell stocks, you're selling those shares to someone else.

The stock market is where people can buy and sell stocks. The stock market is made up of brokers, traders, and investors who are all buying and selling their own shares of companies' stocks. These investors can be individuals or institutions such as banks or pension funds.

What is the Role of Capital Gains in Investing?

Capital gains are the profit made when an investor sells a security at a higher price than the original purchase price. The difference between the purchase and sale price is considered to be capital gains.

Investors with a long-term perspective can use capital gains to generate wealth. Capital gains can be generated by investing in stocks, bonds, or mutual funds, among other assets.

How do I Know If I Should Buy an Investment or Not?

Investing is a complicated process and it is not easy to know if you are making the right decision. There are many things to consider when deciding if you should buy an investment or not.

Investments can be categorized into two categories, income investments and risk free investments. Income investments have the potential for a greater return on your investment but also carry more risk. Risk free investments carry less risk but also have a lower return on your investment.

How Much Money Do I Need to Get Started Investing in Stocks?

Usually you can start with small amount to learn about the strategies and testing out first. It will probably takes time for us to get a feel and choose which methods of investing suitable with our goals.

Conclusion and Recommendations on Learning about the Stock Market

Learning about the stock market has never been easier. All you need is access to the internet and a little time to learn and grows along the way. You can always stay tuned and browse more of our articles. We will try to cater and provides and easy to digest information.

Of course for those of you who needs intermediate or advance information we also will provides it to you with some extra details yet concise format.