Funds are run by other HSX players; normally very experienced ones. They invest on a theme, whether it is nationality, movie genre, sequels etc (the fund description will tell you what the fund can invest in). The good thing about funds is you can invest in them and then forget about them, there’s no management at all. The downside is most of them are a waste of time. Whether the fund managers struggle to manage a personal portfolio and a fund I don’t know, but the majority of funds will not make you a decent return on your money. You can easily see which ones are worth investing in from their price charts. The ones you want to invest in are the ones where you can see it has surpassed H$100 quickly and then been re-launched at H$20 (don’t confuse a sudden drop in price with mismanagement; if it drops from H$100 to H$20 it means it’s been reset). You can see what the fund managers are investing your money in so look at what they’ve bought and the way they’re holding stocks for some tips on openers and star bonds for example. The only funds I hold are the Adjust Fund and the Starbond Fund. Other funds that appear to be reasonable investments if you’ve got some spare cash are the 3D Fund and The European Fund.
If you're ambitious, HSX will, from time to time, have funds that need new managers and you can email to apply providing your portfolio is worth over H$100. You can also email HSX ro make suggestions for new funds.
