Asian Titans Fund --- Any orange flags to this?

Water Cooler
#1

Checking out a very low risk fund for future investment. This fund invests in: - Aluminum Corp

  • Baidu

  • China Unicom

  • Chunghwa Telecom

  • CNOOC Limited

  • ICICI Bank

  • Infosys

  • LG Display

  • SK Telecom

  • Tata Motors Do you see any orange/yellow flags here? Principal is guaranteed and fund has a cap of 7-10%. I’m just wondering if any of these companies could possibly pull down hitting the cap every year.

#2

Watch out how the cap is calculated. There is a similar Canadian fund. The stock’s cap is calculated in the AVERAGE return not the higher return. Example: Stock A is up 20% Stock B is flat at 0% Your average return is not 10%. Your return is 5% because Stock A’s cap is 10%. Therefore the calculation is (10+0)/2. All 10 stocks have to hit the cap to receive the max return.