Investing in Bonds and Mutual Funds | Generated by AI
What is a Bond?
A bond is a type of fixed-income investment where you lend money to a borrower—such as a government, municipality, or corporation—for a set period of time. In return, the issuer promises to pay you periodic interest (known as coupon payments) and repay the principal amount (the original loan) when the bond matures. Bonds are generally considered lower-risk than stocks because they provide predictable income, but their value can fluctuate with interest rates and credit risk of the issuer.
What is a Mutual Fund?
A mutual fund (also called a unit trust in some regions like Hong Kong) is an investment vehicle that pools money from multiple investors to create a diversified portfolio of assets, such as stocks, bonds, or money market instruments. It’s professionally managed by a fund manager who buys and sells securities on behalf of the investors. You own shares in the fund proportional to your investment, and the fund’s value rises or falls based on the performance of its underlying assets. Mutual funds offer diversification and accessibility but come with management fees.
Major Functionalities in the HSBC HK Mobile Banking App
The HSBC HK Mobile Banking app (refreshed in 2025) provides a seamless platform for everyday banking and investments tailored for Hong Kong customers. Key features include:
- Account Management: View balances, up to 24 months of transaction history, and request details for accounts like HKD Passbook Savings.
- Transfers and Payments: Transfer funds domestically/internationally, pay bills, and use FPS (Faster Payment System) for quick peer-to-peer payments.
- Account Opening: New customers can open a bank or investment account in as little as 5 minutes without visiting a branch.
- Security Features: Biometric login (fingerprint/face ID), Mobile Security Key, a dedicated “Security & Fraud” tab for monitoring, and 24/7 push notifications for transactions, eStatements, and alerts.
- Investment Tools:
- Access and trade bonds/certificates of deposit (CDs) via the ‘Investment’ section > ‘Products and services’ > ‘Bonds & CDs’.
- Buy/sell mutual funds (unit trusts) after opening an investment account in-app; review portfolio performance and manage transactions.
- Compare credit card features and get personalized investment insights.
- Support and Convenience: 24/7 ‘Chat with us’ support, seamless switching between devices, and integration with eAdvices/notifications.
For investments like bonds and mutual funds, the app emphasizes ease of access through its digital platform, allowing you to browse, purchase, and track holdings directly. Note: There’s also a separate HSBC HK Easy Invest app for stock trading, but bonds and funds are handled in the main banking app.
References
Vanguard: What is a Bond
Investopedia: Bonds
Charles Schwab: Understanding Mutual Funds
Investopedia: Mutual Funds
HSBC HK: Mobile Banking Features
HSBC HK: Bonds & CDs
HSBC HK: Mutual Funds
HSBC News: App Refresh 2025