ABF Hong Kong Bond Index Fund - About HK dollar bonds

Hong Kong dollar bonds mainly comprise of government and quasi government bonds, and are typically characterised by low risks and stable returns. In times of volatility, these kinds of bonds are often perceived to be an alternative for capital.

As a lower risk investment vehicle, Hong Kong dollar bonds are gaining in popularity among general investors. They are not only relatively less volatile than the equity market through fixed interest returns, but also are preferential to lower bank deposit rates.

To minimise risks especially during times of market volatility, managing and balancing portfolio risk is essential. Investors can balance their portfolios by adjusting the weighting of bonds in their portfolios to suit their investment objectives, time horizon and risk appetite.

For example, investors who are relatively less risk-averse or for those with a longer investment horizon, they can consider a lower bond weighting, while conservative investors or those with a shorter horizon could increase the weighting of bonds to aim for more consistent returns.

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