Since the beginning of industrial
revolution, the idea of economies of scale and mass production
has rooted deep in industrialists' minds. The basic idea is
that when you pool resources, you can achieve better result
than sum of individual effort. In the financial world, investors
have long been pooling their money so that they can capture
attractive investment opportunities. Such pooled investments
usually take the form of mutual funds or unit trusts.
Mutual fund provides market
opportunities to investors. Investors can pick mutual funds
with investment objectives that they desire. The choice can
be on asset classes like bond and equity, on geography like
single country fund or regional fund, on investment strategy
like index tracking or value investing, on specific sector like
industry fund or thematic fund or a combination of the above.
Without going through the details or having huge investment
sum, investors can achieve what used to be possible only for
institutional investors.
Besides market exposure, fund
manager also provides additional values in terms of stock selection,
timing the purchases and selling off and sometimes hedging away
undesirable risks. Good managers often have their own style
and strengths which enable them to out-perform peers under certain
circumstances.
There are tens of thousands
of mutual funds globally and about 2000 authorized funds in
Hong Kong. Understanding and researching these funds is an expertise
in itself. As an investment advisor, Arcadia provides client
with in depth research information on mutual funds and, more
importantly, help clients to select what fits to their personal
needs and objectives.
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