THE number of people investing in funds could be doubled by increasing public education about such tools, says the new chairman of the marketing committee of the Hong Kong Investment Funds Association. Lin Yoke Seetoh said the penetration rate of three to four per cent of the population could be improved in two to three years. The recent approval of a pension scheme for Hong Kong would result in fast development of pension funds. It would release a large amount of capital for fund managers and fuel expansion. A sub-committee of the association set up to monitor pension schemes would report soon. Ms Seetoh expected a relatively stable market in the second half because those who wanted to make redemptions had probably done so. Since April, there had been signs of recovery from the downturn caused by higher interest rates in the United States. In April, there had been a 56 per cent increase in unit trust sales and in May a 31 per cent increase. 'After recording net redemptions in 1994 and the first quarter of this year, the industry registered a modest level of net inflows in the second quarter,' she said. The property market, the retail sector and external factors dominated the market in the first six months, and their influence would continue. Ms Seetoh said: 'There's a marked interest in funds in Hong Kong, and with time, we should be able to educate the public about their value as investment tools. 'We've also taken upon ourselves the responsibility in cautioning investors against risk and towards more protection for them as required by the SFC (Securities and Futures Commission),' she said.