This is an income mutual fund which allows investors to earn a competitive rate of return on their TT Dollar holdings with low risk.
The Promoter of the Fund is Bourse Securities Limited who is also the Fund Manager, Investment Manager and Distributor. The investment responsibility for the Fund’s portfolio is delegated to a team of investment professionals at Bourse who are dedicated to its effective management.
What is the investment objective of this Fund?
The objective of the Fund is to generate investment returns which are superior to benchmark Money Market rates.
What is the Fund’s investment strategy?
The fund invests in a diversified portfolio of debt securities instruments and contracts, which are collateralized by marketable securities primarily registered or domiciled in Trinidad & Tobago.
Who should invest?
This fund is designed for the short to medium term investor (1 to 2 years) looking for higher than money market benchmark returns on their TT$ holdings. Interest Income and low risk are important considerations for this fund.
Attractive Returns – Higher investment returns than those offered by the local Commercial Banks’ traditional Deposit Accounts.
Liquidity – Easy access to your funds at any point in time, and there are no penalty charges for redemption.
Collateral – Investments in units can be used as collateral for a loan.
Quarterly statements – You will get quarterly statements, either via traditional Mail, or Email.
Income earnings – Quarterly distribution of income that is reinvested automatically. However, you may opt to have your income paid to you separately if you wish.
What is the minimum amount to invest?
The minimum initial investment is TT$10,000
The minimum subsequent investment is TT$1,000
Redemption of Units
You have the opportunity to redeem your investment at any time. You can access all or part of your funds on any business day by redeeming units held in the Fund.
To redeem units, simply complete and submit the relevant Redemption Form no later than 11 am on any business day to the Fund Administrator, Bourse Securities Limited.
Submissions after 11 am will receive value on the next business day.
An investor who submits a Redemption Form by 11 a.m. on any business day can receive payment within 2 business days.
Interested investors can call 1-868-628-9100 or send an email to email@example.com
The Documents needed for opening an Account are:
- Two (2) forms of photo identification (e.g. National Identification Card, T&T Passport or Driver’s License)
- Proof of Address not older than 3 months (e.g. Utility Bill, Bank or Credit Card Statement)
- Pay-slip or Job Letter as proof of income and employment.
- A Source of Funds Declaration Form (which we will provide).
You will be required to open the Account at any of Bourse’s offices, but thereafter, any further Investments may be done at any branch of First Citizens Bank (please notify us if First Citizens is used).
You can invest using:
- Manager’s cheques
- Personal cheques (subject to management approval)
- Wire Transfer of funds
- Direct deposits at any branch of First Citizens Bank Ltd
Why would someone choose to invest in an Equity Mutual Fund as opposed to purchase individual stocks?
An investor that purchases individual stock is essentially placing ‘all his/her eggs in one basket’ hence can become exposed to greater risk in event that the stock value declines. A mutual fund invests in a diversified portfolio of assets which minimizes the risk of the fund.
Do mutual funds offer a fixed rate of return?
No, mutual funds invest in securities such as stocks, bonds and financial instruments whose yields and values fluctuate with market conditions.
How does an investor make money in a mutual fund?
- Capital Appreciation
What are the risks in Mutual Fund investing?
Mutual Funds are investments in financial securities with fluctuating values. The value of the stocks in a fund’s portfolio can rise or fall based on general economic conditions and the fortunes of the particular companies that issue those stocks.
Growth Funds seek maximum capital appreciation and carry high risk.
Money Market/Income-type Mutual Funds seek capital preservation and carry low risk.
What is the relationship with risk and return?
The higher the risk, the greater the return to the investor and vice versa.
What can an investor do to avoid or reduce risks?
To reduce risks, mutual fund investments should constitute part of an overall portfolio which ought to be spread among:
- Different companies
- Different industries
This is known as diversification and is the principle upon which mutual fund is based.
What is a Portfolio?
A portfolio is two or more investments which are not similarly affected by various risk factors. If the price of an investment drops because of the influence of a risk, the price of another investment may rise, thus reducing the impact on the total investment.
The risk on a portfolio is generally lower in comparison to the risk on a single investment.
A mutual fund states the kind of portfolio it seeks to construct and outlines how risk factors are likely to affect such a portfolio.
What is the difference between yield and total return?
Yield is the income per unit paid to a unit holder from dividends and interest over a specified period of time.
Total Return is a measure of the change in total value from the beginning to the end of a specified period, usually a year, including distributions paid to unit holders.
This measure includes income received from dividends and interest, capital gains distributions and any unrealized capital gains or losses.
Are Mutual Funds covered by Depositors’ Insurance?
Mutual Funds are not covered by Depositors’ Insurance as is the case with Bank Deposits. The risk is that of the investor.
How can an investor evaluate a fund’s long-term performance?
By comparing the performance of the fund to one or more securities market indices such as S&P 500 (Benchmark for the SavInvest US Dollar Capital Growth Fund), BSE100 (benchmark for the India component of the SavInvest India Asia Fund), the MSCI AC (All Country) Asia Ex Japan Index (benchmark for the Asia component of the SavInvest India Asia Fund) and T&T Composite Index (benchmark for the SavInvest Capital Growth Fund)
Is an investor’s money locked up for a certain period of time in a mutual fund?
Mutual Funds provide a high level of liquidity to investors. An investor who submits a redemption form by 11am on any business day can receive payment within 5 business days.
How long should an investor keep his/her investment in a Mutual Fund?
This depends on the type of Mutual Fund:
- For a Capital Growth Fund, it is advisable to keep an investment for the medium to long-term (approximately a minimum of 3-5 years)
- For a Money Market Fund, it is advisable to keep an investment for the short-term (approximately a minimum of 3 months-1 year)
Many types of funds work best when allowed to ride out the ups and downs of market cycles over long periods of time.
What are the fees associated with a Mutual Fund?
Fees include the following:-
- Fund Administration
- Investment Management
These fees are calculated as a percentage of the Net Asset Value (NAV) of the Fund and are paid on a quarterly basis.
Is the Management Fee part of the Sales Charge?
Management Fees are paid from the Fund’s Assets and are reflected in the Bid and Offer prices.
In contrast, most sales charges are deducted from the investor’s initial investment.
When an investor purchases units in a Fund, how can he/she tell how well his/her investment is doing?
By taking the total number of units he/she owns and multiplying these by the Fund’s Net Asset Value (NAV) per unit (or Bid Price). He/she should compare today’s value against his beginning value. Bourse provides updates of NAVs of a daily basis. They can be found on our website under the “Current NAV Prices” tab and are published weekly on Monday’s Express Newspaper on page 10.
How many persons can invest jointly in a mutual fund?
One MAIN Account holder and up to a maximum of three joint parties are allowed.
Can an investor open a SavInvest Mutual Fund for a minor?
No, accounts can only be opened for individuals over the age of 18 years.
If a unit holder dies, what happens to his/her investment?
For an individual account, the legal representative of the unit holder becomes the rightful owner of the units.
For a joint account, the other party/parties become(s) the rightful owners.