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What is a Mutual Fund

A Mutual Fund is an investment vehicle that mobilizes money from a vast number of investors and aggregates the amount into a large pool which is then invested in securities, financial instruments, cash deposits and other assets such as common stocks, government bonds, corporate debentures, deposit notes, warrants, or property assets, as indicated in its prospectus. A Mutual Fund would be established by an investment management company who would manage the fund to generate returns. The returns is earned proportionately to the amount of units each investor owns in the fund. An investor may choose to invest this way for various reasons, because investing directly oneself may not be as feasible for reasons such as:

Amount to invest may be small and therefore unable to adequately diversify over several types of assets in order to effectively reduce overall risks.
Lack of knowledge, understanding, and expertise regarding investing
Lack of time available to familiarize, research, and stay up-to-date to make investment decisions A Mutual Fund would therefore serve as an effective investment tool that is managed systematically with an objective of achieving the best returns for the level of risk acceptable to investors.

In Summary … Attractive Features and Highlights of Mutual Funds

Professional Portfolio Managers manages the investment portfolio. Investment management companies employ Fund Managers who are knowledgeable and experienced. They are trained and have attained the qualifications required by the authorities in order to perform portfolio management duties to meet the policies and objectives of each Mutual Fund.
Risk Diversification The Fund Manager invests the pooled sum mobilized from investors into various types of financial instruments, such as cash deposits, common stocks, government bonds, corporate debentures, warrants, property assets, etc. as indicated in the unit trust's offering prospectus ("prospectus") which helps reduce risks through diversification.
Liquidity Unitholders may sell the units whenever cash is needed, or may redeem the units to cash the sum invested, or may sell the units by trading in the secondary market on the Stock Exchange.
Wide Selection of Investment Policies Since each Mutual Fund has a unique investment policy, there is a wide selection from which to chose a fund that appeals to the investor. As such, prior to making an investment decision, it is vital to assess one's own needs, investment objectives, financial standing, and appropriate investment horizon in order to most closely meet one's own requirements.
Convenience By investing through funds, an investor will not have to trade securities, monitor price movements or news on individual securities themselves. The Fund Manager will undertake such tasks on your behalf, analyzing and making trading and investment decisions for the portfolio.
Investor Protection Authorities overseeing funds and financial markets, such as the Securities and Exchange Commission, will monitor and regulate the industry to ensure that general investors are not disadvantaged by unfair business practices, illegal means, or unethical practices.

Source:
"RMF-LTF Handbook: Attractive Twins Providing Tax Savings" produced by the "Put Your Money to Work Through Mutual Funds" initiative which is a program jointly supported by the Board of the SEC, the Stock Exchange of Thialand, Capital Market Development Fund, the Association of Investment Management Companies, and the investment management companies to disseminate know-how and basic awareness regarding mutual funds.

Investing And Age Considerations
The following describes general characteristics of a typical individual in the various age groups with regards to likely factors and restrictions influencing their investment decisions.

Age 21-30 Years: The early stage of one's working career. Financial burdens are low; the individual has ample time and capacity to generate income for many years to come. Individuals in this age group can afford to place the bulk of their money in high risk investments because of their capacity to handle greater risks. In the event of losses, there is ample time to recover and remedy ineffective strategies. One may elect to invest in equities such as common stocks or equity funds at up to 90%, with 10% left with cash deposits or fixed income such as government bonds, promissory notes, debentures, or fixed income funds.
Age 31-40 Years: Career becomes more stable, income rises, but expenses increase exponentially as well during this period, since one may get married, start a family, mortgage a home, make car payments, etc. Greater responsibilities and continued financial burden means the capacity to accept risks decreases. Investors in this age bracket should consider reducing the amount invested in equities or stocks down from 90% to just 50% of one's total savings, simultaneously increasing the amount invested in fixed income.
Age 41-55 Years: Working career is stable, income is high, but expenses rise accordingly too. Investors in this age bracket are advised to place their investments in low risk assets, emphasizing protection of principal to ensure a portion would be available in the retirement years. However, it is advisable not to shun equity investments completely, but nevertheless consider reducing this portion. Equities can enhance potential returns, supplementing income earned from interest and dividends. The portfolio weighting considered suitable for this age group consist of 70% cash deposits or fixed income and the remaining 30% in equities, of which a portion may be placed in Long Term Equity Funds to obtain tax privileges as well given that this age group tend to have high taxable income and therefore burdened a higher tax bracket.
Age 55 Years Or More: During retirement, most do not have income yet continues to incur a level of expenses, despite some reduction of daily expenses. Medical bills will likely rise along with age and health conditions, prompting the need to set aside reserves to meet these expenses. Almost the entire bulk of one's wealth should be placed in deposits and fixed income that are low risk such as government bonds or money market funds.

It is apparent that when one contemplates an investment decision by factoring in various considerations as mentioned above, it reinforces common knowledge that is frequently being asked. Young investors have good capacity to take on a higher proportion of equity investments. In contrast, it is advisable that elderly investors place most of their investments in financial instruments that are low risk. However, this does not necessarily mean that one cannot deviate from this general guideline. Any young investor who prefers not to take on much risk, will not be confident to invest extensively in equities since this will not be compatible to one's risk tolerance and personality. On the other hand, elderly investors who are wealthy and eager to seek higher returns may opt to take on more risk and invest in equities. Before making an investment decision, evaluate yourself by reviewing all the necessary factors and assess the most appropriate strategy to deploy your savings: what types of investments are best and how to allocate your money in order to generate returns that do not stray from your intended target.

Participants Involved With A Mutual Fund
A Mutual Fund is structured in a way that benefits the interests of unitholders. It encompasses several participants, each of whom has a defined role to service the fund. Supervision is also established by both private and state institutions. Participants involved with a mutual fund include:

Investment Management Company: The investment management company must be licensed by the Finance Ministry. The investment management company establishes the fund scheme for the Mutual Fund, including investment policy and investment objectives, to be further endorsed by the SEC. The fund must be managed strictly according to the stated policy and objectives. As such, the investment management company shall clearly state each fund's investment policy and objectives clearly in the offering prospectus or summary prospectus for investors to examine before making an investment decision.
Trustee: The Trustee's role is performed by a financial institution that meets the qualifications specified by the SEC, and must not be associated, either directly or indirectly, with the investment management company. The Trustee serves as the representative of unitholders and looks after the interests of unitholders:
1. Ensure the investment management company strictly follows the fund's objectives and investment policy as stated in the fund scheme approved by the SEC.
2. Handle payment for purchase transactions and take delivery of payment for sale of assets.
3. Safekeep all the assets of the fund.
4. Audit the accuracy of the fund's net asset value.
5. Carry out litigation proceedings on behalf of the unitholders should the investment management company commits fraud.
Selling Agents: At present, those who offer to transact unit trusts with the public must be licensed by the SEC only. Selling Agents must meet regulatory requirements and possess a standard level of knowledge to perform sales duties by passing certification standards acknowledged by the SEC. Selling Agents must be registered with the SEC and perform sales duties within the scope permitted by law, including restrictions on sales methodologies or prohibit advertising that may distort key messages. Selling Agents are also referred to in full as sales representatives for the purchase or redemption of unit trusts.
Fund Registrar: A financial institution approved by the SEC that maintains the registration of unitholders in the fund and monitors unitholders' interests with regards to corporate actions such as dividends. The investment management company may perform the Fund Registrar function for funds they manage.
Certified Public Accountant are individuals approved to perform auditing duties and is registered with the SEC. The auditor must not be associated with the investment management company in any way, either directly or indirectly. The auditor's role is to review the financial statements of the fund and certify that the financial statements of the fund are in accordance to accounting principles.
Association of Investment Management Companies was established by the Securities and Exchange Act of 1992 to regulate the fund management industry. The association is registered with the SEC; its members include mutual fund asset management companies, private fund management companies, and provident fund management companies. The association determines governance standards and operating guidelines for members to comply, to ensure consistency of operating standards across the industry. The association also establishes guidelines to reprimand wrongdoing or failure to adhere to industry standards.
Securities and Exchange Commission (SEC) is a state institution established as a regulator of the securities industry, including supervision over investment management companies, issuing regulations, rules, notices, and guidelines in applying securities laws.

Risks Surrounding Mutual Funds
The risks associated with each Mutual Fund is of the same nature as the inherent risks of the type of financial instruments in its portfolio. For example, an equity fund would have similar risk characteristics as common stocks. Likewise, a fixed income fund would have the same risk characteristics as fixed income instruments.

Benefits of Mutual Funds

Returns: Mutual Funds do not guarantee the level of returns investors would receive (except for guarantee funds). Investors may or may not receive a return from the money invested, or may incur a loss upon redemption. Unitholders may receive returns generated by the fund in the form of dividends (for funds with dividend payment features) and returns in the form of capital appreciation. Gain from price appreciation, commonly known as Capital Gain, is realized upon redemption of units.
Taxes Mutual funds are separate accounting entities from that of the investment management company. Returns generated by the fund are exempted from taxes such as taxes on dividend income or capital gains generated by an equity fund. Similarly, interest income, discounts, and capital gains that may be earned by fixed income funds are also exempted. Unitholders receiving dividends from the fund or receiving a capital gains from the unit trusts itself, will be subjected to the usual income tax or corporate income tax in the same manner as direct investments in securities. Individuals filing dividend income from mutual funds separately as taxable income will not be able to reimburse withholding taxes on unit trust dividends. Special funds, namely Retirement Mutual Funds (RMF) and Long Term Equity Funds (LTF) offer unitholders tax deductions on money invested.

Source: Association of Investment Management Companies (AIMC)

Fund Type

Types of Fundss
Funds can be classified into 2 categories, namely

Closed-End Fund is a fund that cannot be redeemed before the maturity stated in the fund scheme. However, unitholders may sell the units in the secondary market where the fund may be listed. A fund not listed on a secondary market may be offered for sale to financial institutions appointed by the investment management company to serve as a Market Maker.
Open-End Fund is a fund which permit the subscription or redemption of units through the investment management company or selling agents, according to trading schedules indicated in the fund scheme, such as monthly, weekly or daily.

Investment Policy
There are altogether 11 main investment policies

Equity fund is a fund which invests most of its portfolio in equities, thus suited to investors who can tolerate a high level of risk in order to seek higher prospective returns.
General fixed income fund invests only in fixed income instruments such as cash deposits, promissory notes, government bonds, and debentures. The fund does not invest in equities, therefore suited to investors who prefer low-risk investments.
Short-term fixed income fund invests in short-term fixed income instruments that has an average duration of no more than 1 year. These funds are suited to investors who prefer low-risk investments and intends only to invest only over the short term.
Long-term fixed income fund invests in long term fixed income instruments with an average duration of over 1 year. It is suited to investors that prefer low-risk investments but wishing to invest over a long term.
Money market fund invests only in fixed income instruments that may be redeemed on call or have maturities within a year. These funds are suited to short-term investors that have low risk tolerance.
Balanced fund invests in both equities and fixed income instruments. The allocation between the two types of assets will be indicated clearly by the fund scheme. These funds are suited to investors who can accept medium levels of risks but aim for higher prospective returns than what fixed income funds generate.
Flexible portfolio fund invests in both equities and fixed income instruments but the allocation between the two types of assets is not fixed. It utilizes the portfolio manager's expertise to set strategies appropriate for the prevailing investment climate. These funds are suited to investors who can accept medium levels of risks but aim for higher prospective returns than what fixed income funds offer.
Fund of funds invests the bulk of its portfolio in other funds. As such, its risk profile and return prospects as a whole depends on the aggregate characteristics of the funds it has in its portfolio.
Warrant fund invests mostly in warrants of stocks, rights issues, debentures, or unit trusts. They are likely to appeal to investors who can tolerate a high level of risk in exchange for high prospective returns.
Sector fund puts most of its investments in equities of companies belonging to specific industries as categorized by the Stock Exchange of Thailand. These funds are for investors who can accept a level of risk that is higher than general equity funds.
Property fund invests in property assets and is therefore suited to investors who can accept a high level of risk and intends to invest over the long term.

Funds serves as investment vehicles and therefore a variety of funds are available to cater to the different preferences of various investors, as described above.

Special Funds

Retirement Mutual Fund (RMF) Retirement Mutual Funds (RMF) are funds established for the purpose of promoting long term savings and investments among individuals to help prepare for a better retirement. Investors in RMF funds will receive superior tax incentives beyond those of regular funds. Money invested in RMF funds may be tax deductible at up to 300,000 baht, when combined with a Provident Fund or Pension Fund, as applicable. Investors receive tax benefits immediately starting with the initial year of investment.
Long Term Equity Fund (LTF) Long Term Equity Funds (LTF) are funds which emphasizes investments in equities through a government initiative to increase the proportion of institutional investors (specifically mutual funds) who are long term investors in the Stock Exchange of Thailand. An increase in the proportion of institutional investors will lead to greater stability for the Thai equity market. Individual investors in LTF funds will be eligible for tax privileges as incentives to encourage long term investment in the equity market.
Foreign Investment Fund (FIF) Foreign Investment Funds (FIF) are funds with the aim of mobilizing money domestically and investing it overseas. The Bank of Thailand permits such overseas investments, but places restrictions on the amount in each year. An FIF fund is the sole vehicle by which Thai investors may diversify to invest abroad, and thereby reducing their overall investment risks. Investment management companies which are permitted to manage FIF funds must meet the qualifications required by the SEC. An investment management company may mandate the portfolio management function to a fund manager overseas, since these investments require specific expertise. The investment policy of FIF funds may be any of the 10 standard types categorized by the SEC as mentioned previously, with risk and return levels that vary accordinly. Investors are advised to consider carefully before making an investment decision and take into account factors such as one's age, risk tolerance levels, and prospective returns targeted. FIF funds must invest or hold securities or assets or generate income through instruments or means permitted by the SEC as follows:
- The fund's entire portfolio must be invested overseas, except for cash deposits kept locally to meet the fund's operating expenses or other reasons such as to finance a planned investment or for liquidity.
- Investment is permitted only in countries having a securities and exchange regulator that is a member of the International Organization of Securities Commissions (IOSCO) or in countries where exchanges have membership in the Federation International des Bourses de Valeurs (FIBV)
- Issuers of securities or financial instruments or deposit takers must be entities which are under legal jurisdiction of countries having a securities and exchange regulator that belongs to IOSCO or of countries with securities exchanges having membership in FIBV.
- For investment or holdings of equities, those equities must be traded in Organized Markets in those respective countries (such as official stock exchanges under the supervision of a securities and exchange regulator with membership in IOSCO or traded on an exchange that has membership in FIBV.
The investment management company must seek approval from the Stock Exchange of Thailand to list the units of FIF funds within 15 days after the fund's registration. If denied listing, the investment management company is required to abort establishment of the fund.
Guarantee Fund For Guarantee Funds, the investment management company has arranged for a financial institution to guarantee that unitholders will receive principal or principal plus return, as stated in the terms of guarantee, either partially or in its entirety, upon maturity of period guaranteed. The objective of a Guarantee Fund is to ensure investors that principal is protected. The investment policy of Guarantee Funds may be any of the 10 standard types of funds mentioned previously. Investors are advised to consider carefully before making an investment decision. The financial institution providing the guarantee to the fund must meet either of the following qualifications:

Source: Association of Investment Management Companies

Tax

A Tax is imposed on the public by the government to raise money to finance programs for public social benefit. As such it may not reciprocate the contributing taxpaying individual directly.
Taxes are compulsory collections imposed on the public; all citizens are obliged to pay taxes. The purpose of taxation is to finance public expenditures for collective public social benefit.

Objectives of Tax Collection

Raise sufficient revenue income for public expenditures
Improve income distribution
Ensure more efficient use of resources
Support economic growth and development
Maintain economic stability

Tax Privileges for Mutual Funds

Retirement Mutual Fund : RMF
Retirement Mutual Funds have an objective to promote long term savings and investment by individuals to help financially prepare for a better retirement. Unitholders in RMF funds therefore receive greater tax incentives than unitholders of general mutual funds. Money invested in RMF funds are tax deductible up to 500,000 baht per annum when summed together with Provident Funds or Pension Funds (as applicable). Unitholders receive immediate tax savings beginning with the initial year of investment.

RMF funds are suited to which type of investor ?

Self employed individuals who previously did not have a long term investment scheme which provided tax savings at the same time, such as inability to qualify for schemes like Pension Funds.
Or staff in companies where the employer does not offer a Provident Fund to save for retirement.
Another likely investor of RMF funds are employees or government officials already in a Pension Fund scheme but wishes to set aside a larger amount for retirement and obtain greater tax savings to take advantage of the 500,000 baht tax deductible ceiling offered by the state.

Terms and Conditions For Investment To Qualify For Tax Privileges include

Invested amount must come from taxable income as defined by Article 40 of the Revenue Code
Income-earning individuals must be committed to continually invest on a regular basis. In special circumstances, the investor may suspend new investments for a duration of no more than one year at a time. Individuals not earning income in any given year or years, may opt to suspend new investments without being disqualified for tax privileges and resume investing once income is earned again. Duration of stream of investments is measured from year of initial investment.
Minimum investment per annum must be at least 3% of earned income or 5,000 baht, whichever is lower. When calculating amount of minimum investment required, include total from all applicable funds invested that year.
Maximum investment per annum must not exceed 15% of earned income or 300,000 baht per annum. When determining maximum amount eligible, include total from all applicable funds invested that year.
Funds do not pay dividends
Units of the fund may not be sold, transferred or pledged as collateral.
If units are sold prematurely, before the investor reaches an age of 55 years or held for less than 5 consecutive years, the unitholder must repay to the Revenue Department any tax benefits received over the most recent 5-year period. Capital gains from redemption must be included along with earned income when calculating taxable income for the year the units were redeemed.

Investment policy of RMF funds

An RMF fund's investment policy may match any of 10 standard types endorsed by the SEC as mentioned above. Since risk and return profiles vary accordingly, investors are advised to consider carefully before making an investment decision and take into account factors such as one's age, acceptable level of risk, and prospective returns.

Long Term Equity Funds : LTF
Long Term Equity Funds' primary focus is to invest in equities. The government promotes LTF funds in order to increase the proportion of institutional investors (specifically mutual funds) who would invest in the Stock Exchange of Thailand over the long term. Increasing the proportion of institutional investors in the Thai equity market is beneficial to the market's stability. Individual investors in LTF funds will receive tax benefits as incentives to invest over the long term.

LTF funds are suited to which type of investor ?

Long Term Equity Funds are suited to investors who intend to invest in equities over the long term but may not have the expertise to handle stock investments or may not have the time to do so, therefore prefer to invest through mutual funds. Investors, however, should be aware and accept that there are risks associated with investments as well as the restrictions regarding investment time horizon.

Terms and Conditions For Investment To Qualify For Tax Privileges include

Invested amount comes from taxable income as defined by Article 40 of the Revenue Code
Investors who have already invested in an LTF fund must hold that investment for at least 5 calendar years.
Maximum amount eligible for tax deduction is up to 15% of earned income in the year but not exceeding 500,000 baht.
Units are sold prematurely before 5 calendar years would be disqualified for tax privileges and tax benefits already received must be repaid plus additional 1.5% per month penalty, counting from the month of April of the year when there was application for tax deduction until the month the benefits are repaid. In addition, the unitholder must pay taxes on capital gains received, subjected to a 3% withholding tax on gains received; those gains received from redemption must also be included as taxable income for that year.

Investment Policy Of LTF funds

LTF funds have only one investment policy, namely to invest in stocks of companies listed on the Stock Exchange of Thailand, averaging at least 65% of the net asset value of the fund. The fund could focus on investing in stocks in the SET 50, a specific industry sector, or in stocks selected at discretion of the investment management company, depending on what is explicitly outlined in each LTF fund's investment policy.

Tax table: http://www.scbam.com/brochure/funds-tax11I.xls

Knowledge about property

Find Out More About Property Funds
Property Funds, also referred to as "Type I" funds, aim to invest in property that generates regular returns from rental income and may invest in offices, serviced apartments, etc. Income earned from these properties translate into income for unitholders, earned through the fund's dividend payments. The fund generates returns for unitholders in the form of:

Dividends sourced from income generated by the operating performance of the fund's property assets
Capital Gains that may be result from the sale of units on the Stock Exchange

Establishment and Management of Type I Funds

An investment management company establishes such funds and will take on responsibility of managing the property asset of the fund.
The investment management company may appoint a property manager possessing know-how and experience in property management to take on this role for the fund.
A Trustee will safekeep the assets belonging to the fund, including monitoring the property's condition to ensure the fund's assets are sound.

Features of Property Funds

Are closed end funds and must be listed on the Stock Exchange
Fund size must be at least 500 million baht
The fund may be structured in two ways
- First structure The fund clearly indicates the specific property to invest, or
- Second structure The fund conceptually states the type of property to invest and the targeted location
Regular income from rental of property to tenants must amount to at least 75% of the fund's total income.
Dividend payout to unitholders must be at least 90% of the net profit for the fiscal year.

Terms and Conditions Regarding Investments
Income and returns generated by Type I funds are earned primarily from property assets, thus strict restrictions are imposed on investments assets to mitigate risks to unitholders.

The property must be located within Thailand
A feasibility study is required to assess the target investment
The fund may only invest in completed projects. If the property is undergoing development, the building structure must be at least 80% completed (by value).
At least 75% of the fund's net asset value must be invested in property assets
Purchase or lease of property must be based on appraised value
Any other terms and conditions that enhances investor protection, such as prohibiting the investment in property assets under litigation, fire insurance coverage requirements, etc.

Appraisal of Assets
Since the assets of Type I funds are properties which may not readily have a daily market price as other financial instruments, it is therefore vital that unitholders have an up to date price reference to help support their investment decisions when determining the value of the Type I fund's assets. Thus, it is required that:

When purchasing or selling property assets, the investment management company must arrange for an appraisal of the asset's value to be conducted by a property appraiser which is on the SEC's approved list and disclose the information to investors.
The investment management company must arrange to have the fund's property appraised by a property appraiser ever 2 years, and audited annually.

Information Disclosure
Type I funds must provide information disclosure regarding subscription offer, property invested and other necessary information such as:

Prospectus and details of fund scheme
Summary information of vital facts regarding the property investment such as purchase price or rental rates
Financial Statements
Annual Report showing details of the property investment, business conditions of the property market and outlook, expense ratios, and opinions of the Trustee

Calculation and Disclosure of NAV

NAV is calculated twice a year on the last working day in June and December. Disclosure of NAV will be made within 45 days thereafter.
Calculation of the NAV of property assets must be based on value determined by the property appraiser.

Differences Between a Type I Fund and a Property Developer
Investment: Type I funds have a policy to only invest in property assets that generate income, while property developers are not bound to invest or limit its business to the property sector. Property developers have better flexibility in diversifying its investments.

Dividend Payments: Type I funds must pay out at least 90% of its net profit while property developers have the discretion over policy regarding dividend payouts and permitted to make amendments.

Debt leverage: Type I funds are not permitted to take on debt, whereas property developers can do so.

Investment management and safekeeping of assets: Type I funds deploy a third party to take on the role of Trustee which will safekeep the investment assets such as title deeds, rental contracts, etc. including auditing the assets and monitoring the investment management company's duties as fund manager.

What can unitholders expect to receive from Type I funds

Ability to invest in a property asset that generates income through the format of a mutual fund. The unitholder receives regular income in a similar manner to an investment in fixed income instruments. However, the income stream generated by Type I funds may not be as consistent as fixed income instruments but will tend to vary according to property market conditions and the economic climate.
Another alternative choice to allow the investor diversify investment risks
Investors have better liquidity than holding the property assets directly

Investment Risks
Net profit generated by Type I funds will depend on the conditions of the property market and general economy. The NAV of the fund may fluctuate and if it declines to a certain level, the Type I fund may be unable to provide a dividend payment to unitholders when it has a net loss.

Points to consider, before deciding to invest

Examine details of the fund and consider relevant factors. Investors are urged to examine the Fund Prospectus in detail, carefully considering the investment policy, details of the property assets to be invested by the fund, the investment management company, dividend payment policy, fees and expenses, etc. In addition, investors should consider factors which may impact the property market such as economic growth, interest rate trends, or business cycles of the property market.
 Assess whether the Type I fund is compatible with your investment objectives and whether the risk levels are acceptable. Type I funds usually appeal to investors looking for recurrent income that is linked to the property market.
For further clarification, investors are advised to consult a sales representative to assist with the investment decision.

Purchasing or selling units of Type I funds
Investors may purchase or sell units at the Stock Exchange of Thailand; prices may incur a premium or discount from the NAV.

Points that investors should consider

Property assets invested by a Type I fund tend to be in a property asset which is large and possibly the only property investment made by the fund. As such, a Type I fund does not have much diversification when compared to a typical mutual fund. Investors should assess and understand the risks involved before making an investment decision.
Investments in units of a fund differs from bank deposits since funds contain investment risks. The amount received from the investment may be higher or smaller than the initial sum invested. Furthermore, property funds aim to invest in property assets over the long term and investors are advised to assess the risks and returns associated with an investment of this type.

Source: Office of the Securities and Exchange Commission