Taiwan's Four Major Funds: Buying Funds Through Banks

Taiwan's Four Major Funds: Buying Funds Through Banks. A relaxed talk on investing from CLEC Investment and Financial Education Academy. Post date: February 14, 2021.

*** Thanks to friends in the banking industry for kindly providing subscription information for the four major funds at various banks! ***

In Taiwan, if you want to buy funds directly through the bank you already use and do not want to go through a relationship manager, you can use online banking to place fund orders yourself.

When I went to the bank counter and said I wanted to "buy funds through online banking," the bank staff handled the related fund account opening procedures.

Banks generally take the following three steps to enable online fund ordering:

1. Apply for a fund trust account

(At the counter or through online banking. Some banks allow fund trust applications directly through online banking.)

2. Set up agreed NTD and foreign-currency debit accounts

3. Complete an investment profile analysis / risk tolerance analysis (available either at the counter or through online banking)

Some funds require an "aggressive" investment profile before they can be purchased, so when filling out the investment profile questionnaire, the answers need to match the aggressive profile.

Attachment:

Compiled codes for the four major funds at domestic banks (click the image to see the full version)

• You do not need to worry about whether the class is ex-rights, ex-dividend, or accumulation.

Some pay distributions only once a year or do not distribute rights or dividends.

Because the distribution rate is low, and investors can usually choose to receive additional units, it will not affect the overall return.

1. Franklin High-Tech Fund

It distributes once a year. Banks generally also distribute additional units to investors rather than cash.

2. Morgan Stanley U.S. Growth ex-rights / ex-dividend

Although there are both ex-rights and ex-dividend types, in practice neither truly goes ex-rights or ex-dividend. It is only the fund company's own classification, and the performance is the same whichever one you choose.

3. BlackRock World Technology Fund A2 USD

There is no ex-rights or dividend issue.

4. JPMorgan JPM U.S. Technology - Distribution / Accumulation

The distribution class pays only once a year, and the distribution rate is extremely low. Banks generally also give investors additional units rather than cash.

Some banks list only this distribution class and not the accumulation class. The performance of the two classes is the same, so either one is actually fine.

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