HSBC Asset Management is launching its first capital-guaranteed mutual fund of 2003 in a sign that interest among retail investors in Hong Kong is still focused on ultra-conservative products that will eke out a better return than bank deposits.
Sally Wong, executive director at the Hong Kong Investment Funds Association, says guaranteed funds dominated 2002, comprising of 60% of new fund sales, but not as absolutely as in 2001 when guaranteed funds made up 90% of sales. Fixed-income funds have been making a comeback.
This year we expect that as long as interest rates remain low, guaranteed funds still serve a purpose for investors who would otherwise be depositors, says Wong....
