The FSA Spy market buzz – 26 April 2024
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HEAD-TO-HEAD: CCB Principal vs E Fund
FSA compares two China onshore funds available for sale in Hong Kong through the Mutual Recognition of Funds (MRF): the CCB Principal Dual Income Bond Fund and the E Fund Stable Return Bond Fund.
The CCB Principal and E Fund products receive a Morningstar rating of four stars and five stars, respectively, based on their three-year performance.
The choice between the two depends on the risk tolerance of the investor, Yao said.
The CCB Principal fund has had stable performance in the past, with outstanding long-term risk controls, suggesting its performance goal includes stability, he explained.
Its volatility (standard deviation) and maximum drawdown are significantly smaller than the category average for the five-year, three-year and one-year period.
“The CCB Principal fund could be the choice for investors with a medium risk-tolerance.”
The other product, the E Fund Stable Return Bond Fund, has had volatile upside and downside movements.
“Its feature is high return but with high volatility, which would be suitable for investors with high risk-tolerance,” Yao concluded.
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