Getting started
  • Why should I invest in a unit trust or mutual fund?
  • For retail investors, mutual funds can be a smart and cost-effective way to invest as many funds have affordable minimum investment requirements. As a mutual fund often invests across sectors, industries and markets, buying shares in one is also an easy way to diversify your investment portfolio and spread risk.

    There is a broad range of mutual funds available and each must be accompanied by a prospectus and product highlights sheet when it is offered to you. Read these documents carefully to understand the fund’s investment objective, strategy, risks, fees, historical performance and other important information. You can select a combination of funds to cater to your specific investment objectives and risk tolerance.

    As part of retirement planning, you can invest in funds or unit trusts via the Supplementary Retirement Scheme (SRS) or the Central Provident Fund Investment Scheme (CPFIS). To learn more, go to CPF & SRS.

  • How do I know which fund is right for me?
  • Each fund has its own investment objective and investment approach or strategy. You need to make your choice based on your own investment objectives and risk tolerance.

    Some investors are comfortable with higher investment risk because they want to aim for higher returns in the long term. Others may prefer more stable investments with lower returns.

    For more on how to choose funds and build a diversified portfolio, go to How to pick funds.

  • How are charges and fees calculated?
  • An initial sales charge is deducted from your investment by the fund distributor with the maximum amount chargeable as stated in the fund prospectus. The amount varies from distributor to distributor.

    A switching fee is payable when you liquidate a fund to invest in another fund managed by the same asset management company.

    Last but not least, an annual management fee is charged by the investment manager to cover the management and operation of the fund. As it is incorporated into the price of the fund, it does not appear as a separate charge on your holdings statement.

    The fund prospectus contains the details of charges and fees explained above.

Managing your investments
  • How long should I hold a fund for?
  • Markets move in cycles. Over short periods, there can be a lot of ups and downs. But the longer you stay invested, the greater the probability that your investment will generate a positive return. This strategy is called dollar-cost averaging (DCA). To find out more, go to Investing in mutual funds.

    We publish monthly factsheets on Fidelity Funds registered in Singapore. Read these materials to monitor how your fund is performing.

    Depending on your time horizon, you may want to modify the risk-return profile of your investments. For example, when you are near retirement, you may want to hold more of your money in low-risk options. To learn more, go to Managing your investments.

  • Who manages the funds?
  • The whole process of managing a fund requires the expertise of a high-calibre team.

    The fund manager or portfolio manager decides on the underlying investments for a fund and is responsible for the fund's investment strategy. But he/she cannot operate alone and is usually helped by a team of experienced investment professionals – investment analysts, traders, fund administrators and support teams.

  • What is Fidelity's investment approach?
  • Active fund management and diligent research are the cornerstones of Fidelity's approach.

    Our investment professionals analyse a company beyond the details on paper. We visit their offices and factories to learn about the intricacies of their operations. We also talk to the company's suppliers, distributors and customers to build a three-dimensional view of the company's growth potential.

    In addition, our regular interactions with senior management allow us to assess the quality of the management and its long-term strategy. Fidelity has access to decision makers because of our reputation and presence in the market place.

    All companies will be subjected to the same independent analysis and will be selected only if Fidelity's portfolio managers are fully convinced of their potential.

    Good research requires extensive resources. Fidelity is well-placed in this regard as we are one of the largest investment teams seated globally.

    Research is shared globally across teams and this allows our portfolio managers to tap on the expertise of local insights in managing funds anywhere in the world.