Understanding Money Trust Investment Services
When engaging in Specific Money Trust Investment for domestic and foreign funds through your financial institution, here are essential considerations:
1. Regulatory Approval ≠ Risk-Free
- Funds approved by the Financial Supervisory Commission carry inherent risks
- Past performance doesn't guarantee future results
- Fund managers exercise due diligence but don't ensure profits
2. Investment vs. Deposit
- Funds are investment products, not deposits
- Not covered by deposit insurance
- Investors bear all potential capital losses and exchange rate risks
3. Due Diligence Requirements
- Must review prospectuses and risk disclosure documents
- Understand maximum potential loss could equal entire principal
Critical Fund Investment Factors
Fee Structures and Compensation
| Fee Type | Description | Where to Find Info |
|---|---|---|
| Distribution Fees | Deducted from NAV | Fund prospectuses |
| Deferred Sales Charges | Applied at redemption | Fund class details |
| Broker Compensation | Included in trust fees | Bank disclosures |
👉 Compare fund fees and performance across classes
Special Considerations for Bond Funds
High-yield bonds carry additional risks:
- Credit risk (higher default potential)
- Interest rate sensitivity
- Liquidity constraints
- Currency exchange volatility
ESG Investment Information
- Review ESG criteria in prospectuses
- Check ESG Fund Information Center for details
China Market Investments
- 20% cap on mainland securities for most offshore funds
- 40% cap for qualifying "Deep Cultivation Plan" funds
Unique risks include:
- Policy changes
- Accounting/tax system differences
- Market volatility
FAQ Section
Q: Are fund dividends guaranteed?
A: No. Dividends may come from principal, potentially reducing original investment.
Q: How does currency affect my returns?
A: Foreign currency fluctuations impact both investment and redemption amounts.
Q: What's the difference between fund NAV and ETF prices?
A: ETF prices reflect market trading values, while NAV represents underlying assets.
Q: Can I access my money anytime?
A: Some funds may delay redemptions during market stress or high withdrawal volumes.
👉 Learn more about smart investment strategies
Key Takeaways
- Always review prospectuses before investing
- Understand all fee structures and their long-term impact
- Diversify to mitigate market-specific risks
- Monitor currency exposure in foreign investments
- Consider ESG factors where relevant to your values
Note: Information reflects Taipei Fubon Bank's policies as of publication. Terms subject to change without notice.