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Currency funds can be handy 'parking place'

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Currency funds are available in a range of different currencies from Fidelity, including those of all major countries and most of the better-known minor ones.

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Fidelity encourages investors to use the facility as a parking place for funds for the sake of convenience, rather than as a speculative vehicle for taking views on future currency movements.

Denominated in a particular currency, the funds are actually invested in Triple A-rated bank deposits offering wholesale interest rates.

'They pay better interest than a bank, hopefully, but there are no derivatives involved. They are not a currency play,' Lisa Popick, Fidelity's director, retail marketing, said.

The group generally encouraged equity investment rather than fixed income, she said.

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The minimum investment in Fidelity currency funds is US$2,500 except for Hong Kong dollars where the minimum is HK$50,000.

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