Investors should note that all investments involve risks. Prices of investment products may go up as well as down and may even become valueless. Investors should read the offering documents and risk disclosure statements of the relevant investment products for product details and risks etc.
Do you understand the investment you have made?
Here are some key points for you to note about your investment. Please click "
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About the product features:1.
Are you clear about the product’s investment objectives?
Different investment products have different investment objectives and involve different risk levels. Before investing, you should consider whether the investment product suits your own investment objectives, financial situation and whether you can bear the risks associated with investing in the investment product.
2.
Do you understand the features and the key risks of your investment?
Investments involve risks, including the possibility of substantial capital loss and the level of return is always correlated to the level of risks. Hence, you should clearly understand the features and also the key risks and possible downside of the investment product, and consider whether it suits your personal circumstances.
3.
Do you know the tenor of your investment?
Different investment products have different investment tenors, e.g. short, medium or long-term, to achieve the product’s investment objectives. You should understand the investment product’s tenor and check whether it matches your own investment needs.
4.
Do you understand all the fees and charges incurred/to be incurred for your investment, such as transaction costs and any ongoing fees and charges?
There are fees and charges associated with your investment trading. You should clearly understand and take into account such fees and charges, which will affect your investment return.
About the selling process:1.
Do you understand how the product recommended to you (if applicable) was shortlisted?
We will seek your input to fill in various questionnaires for us to understand your investment needs, risk profile and investment product selection criteria. Based on the information provided by you, we will present you with a list of suitable products as a reference to facilitate your investment decision making.
2.
Did you receive and have sufficient time to carefully read the offering document and risk disclosure statement of the relevant investment product before making the investment?
You should spend time reading the offering document, such as the prospectus, to study the investment product’s features and risks thoroughly before making the investment and should not rely solely on marketing materials and/or products key facts statements which only provide highlights.
3.
Do you know how your risk tolerance level was assessed (e.g., considering factors such as your investment objectives, financial situation, investment experience and knowledge)?
Before investing, you are required to fill in the Risk Profiling Questionnaire in case you do not have a risk profile record with us/ your risk profile record has been outdated. The Risk Profiling Questionnaire is intended to help you understand your risk profile and investment needs. A risk tolerance level will be assessed based on the information provided in the Risk Profiling Questionnaire (e.g. your financial situations, maximum investment time horizon that you feel comfortable with).
4.
Did the risk rating of the relevant investment product match your risk tolerance level at the time of the transaction?
We will assess if the risk rating of the investment product matches your risk tolerance level and notify you of the assessment results. If there is any risk mismatch, you should take note that the investment product may not be suitable for you and make sure you fully understand the features and risks of the investment product before making the investment decision.
5.
Do you know why the concentration risk matters for your investment portfolio?
Compared with investing in a single type (high concentration risk), a balanced portfolio investing in different asset classes tends to be less volatile. When making any investment decision, you should consider diversifying your portfolio in terms of product and risk exposure and should maintain a certain level of liquidity to meet any spending needs.
6.
Do you understand that investments which are medium-to-long term in nature should not be traded frequently and the holding period should not be too short?
Frequent trading and a short holding period may be contradictory to the investment objectives of investment products of a medium-to-long term nature (e.g. Investment Funds, Bonds), and may not be in line with your investment needs.
The resultant related transaction costs of such trading practice may also have an adverse impact on the investment return. You should consider whether with the transaction costs, you will receive the type of investment return you expect.
The resultant related transaction costs of such trading practice may also have an adverse impact on the investment return. You should consider whether with the transaction costs, you will receive the type of investment return you expect.
If you want to understand more, please call our Customer Service Hotline (852) 2822 0228 during office hours or visit any of our branches. It’s our pleasure to serve you.