GUINNESS Flight, a fund management group with about US$2.6 billion under management, opened a unit trust shop yesterday in a bid to widen its appeal among Hong Kong investors. Domestic investors with a minimum investment of $10,000 can choose between any of the group's 31 equity, bond or cash funds on offer. Investors should expect initial charges of around five per cent and annual management costs of between 0.5 per cent and one per cent. The increasingly popular money market fund has no initial charge and an annual management fee of 0.5 per cent. There is no minimum investment for top-ups. Managing director Dudley Howard said: ''Chinese investors like to eye-ball the people they give their money to. This shop will enable investors to talk to our Chinese staff about their investment strategy.'' Those considering investing more than $50,000 should be able to negotiate a discount. The shop is in the Far East Finance Centre, Admiralty. Mr Howard, a founding director of Jardine Fleming Unit Trusts, said investors were increasingly wary of the volatility in regional markets. This is evidenced by the $100 million a month that had been flooding into Guinness Flight's top-performing managed currency fund, he said. The company, a London-based subsidiary of merchant banking group Guinness Mahon Holdings, has a high profile among expatriate investors, which it hopes to extend to the Hong Kong community. Director Howard Flight said there was scope for the Hang Seng Index to quadruple over the next six years. Mr Flight said the obvious negatives were property prices and the overheating of the Chinese economy. But he said Hong Kong's price-earnings ratio of 10 compared to about 30 in India and 20 or above in America and Europe. ''We are more positive than negative about the prospects for the local market, but it may be that it falls another 500 or 1,500 points. ''The next big major move is likely to be upward and it is not a market to be out of.'' Another director James Leslie is responsible for co-managing the company's new $39 million Asian Currency and Bond Fund.