There are several categories of global funds, namely:
Equity – A unit trust fund that invests primarily in shares/stocks traded on foreign stock exchanges.
Bond/Fixed Income – A bond/fixed income fund is defined as a fund that invests primarily in debentures in foreign markets.
Balanced Fund – a unit trust fund that invests in a balanced mix of shares/stocks and debentures in foreign capital markets.
Feeder Fund – A unit trust that invests all its assets in just one collective investment scheme abroad.
Funds of funds – A unit trust fund that invests all its assets in other collective investment schemes. To qualify for this category, the fund must invest in a minimum of five collective investment schemes (local and abroad).
Real Estate Investment Trust (REIT) – a unit trust fund that invests in local and foreign real estates
Investor must not confuse “fund category” with “fund type” because they have two different meanings. To illustrate:
Fund Name: AQS Global Equity Fund
Fund Category: Equity
Fund type: Growth
What does this actually mean?
The fund seeks to provide capital growth and some income in the medium to long-term
Fund type
by investing in a portfolio of global securities (equities).
Fund category
Always read the prospectus
Be it a local fund or global, investors must always read the prospectus. The prospectus will provide information about the fund that could assist investors in making an informed investment decision. It is better to read than to weep.
