How is the fund’s rate of return calculated?
The rate of return is calculated as :
Rate of Return (%)=(NAV today/NAV at subscription date−1)∗100
Why is there a difference between the Net Asset Value (NAV) and the Taxable NAV?
This difference arises because some investment income from fund assets is exempt from taxation. Typical tax-exempt income includes capital gains or valuation gains from domestic listed equities. Therefore, domestic equity funds that mainly invest in listed stocks usually show a difference between NAV and Taxable NAV.
A fund has multiple Classes - are the differences only in fees, or do they differ in investment strategy as well?
Funds with multiple Classes are called Multi-Class funds. The differences lie in the presence or absence of front-end sales charges, management fees, or other expenses. Front-end fees are paid at the time of subscription, whereas back-end fees may be charged upon redemption depending on the holding period or waived. Therefore, investors should choose based on their investment period and investment objectives.
How can I check the fund’s performance?
You can check it via the distributor’s mobile application, website, or the fund manager’s investment report.
How can I redeem a fund before maturity?
After submitting a redemption request, the proceeds will be credited within several business days according to the fund’s redemption policy. For certain funds, the processing period may be longer.
Is the principal guaranteed?
In principle, the principal is not guaranteed in a fund, and losses may occur depending on investment performance. Some funds invest in relatively safe assets, such as government bonds or MMFs, but even these do not provide a definitive guarantee of the principal. However, by diversifying investments across various assets, funds aim to mitigate risk and pursue stable returns.
What should be considered when making an investment?
It is important to accurately understand your own investment profile, and before subscribing, you should review the prospectus and check the risk rating to gain a more detailed understanding of the fund.