LIECHTENSTEIN Global Trust (LGT) offers three classes of select funds to long- term investors. These include Balance, Growth and Capital Preservation funds. Under this umbrella, an investor could choose his own investment risk profile, said LGT's marketing manager, Michael Yuen. 'An older investor might want to be more conservative: he might have 60 per cent in Capital Preservation and 40 per cent in Balance. A young executive might have 70 per cent in Growth, 20 in Balance and 10 per cent in Capital Preservation. The beauty of it is that a client can mix and match. We can give him a unique portfolio which suits his needs,' he said. The Balance Fund has been established for 14 years and has achieved an annual compound growth rate of 13.5 per cent. 'Most people, when they think about saving, only think about a savings account. But unless a bank can guarantee a return of 12.5 per cent, it is no match,' he said. Mr Yuen advises investors not to hoard their money in savings accounts. 'In recent years, the interest on bank savings deposits has only been three or four per cent. So, when you compare a Hong Kong savings account with one of our very well-balanced, international funds, there is no comparison on returns. 'Hong Kong also has a very particular situation with the US dollar peg. Our deposit rate has nothing to do with inflation. 'They are not closely correlated like they are in some developed countries. The inflation rate has always been higher than the interest rate so, if you keep your money in the bank, you would be in a very bad position.' The Balance Fund is classified as a medium-risk fund with international bonds invested widely around the globe: in the US, Germany, Japan, Southeast Asia, Hong Kong and some emerging markets. 'With a well-balanced global fund, you can increase your return without increasing the risk too much,' Mr Yuen said. For investors who wanted a monthly income from their investment, this was an ideal fund. He said LGT funds were particularly popular with Hong Kong people looking for a savings plan. 'We are thinking of reducing our minimum investment from $5,000 to $3,000, so you can start investing in this fund with only $3,000 a month,' he said. Dollar-cost averaging, where the same amount is invested every month regardless of the price of shares, was a powerful investment approach. 'A lot of investors make investments at the wrong time. Most people add more when the price goes up but we invest in every market, every day and this long- term approach means that we are ahead of the market. 'We are always cashing out of the market when it is going up and investing in markets which are lagging behind. This disciplined international exposure reduces volatility and risk and makes good investment sense for people who want a long-term savings plan.'