1. What is CDH Balanced Fund?

 

The CDH Balanced Fund is a mutual fund. It seeks to achieve growth in income and capital with the aim of generating medium to long-term value, while ensuring high security and safety of funds invested. The Balanced Fund focuses on growing subscribers' funds by investing in both equity(shares) and fixed-income investments.

 

 

 

2. What is a mutual fund?

 

A mutual fund is a type of investment that allows investors to pool their money together into one professionally managed investment. Mutual funds invest in shares, bonds, cash and/or other assets. Such funds can be considered as baskets

of investments.

 

 

 

3. How does the CDH Balanced Fund work?

 

The CDH Balanced Fund pools funds from its shareholders. One-half of the funds is invested in fixed-income investments. The other half is invested in publicly traded shares, such as ordinary shares of the companies listed on the Ghana Stock Exchange.

 

CDH Balanced Fund shareholders enjoy three-fold benefits:

capital gains, dividends, and interest payments. Capital gains are earned when the shares in which the Fund has invested have their prices rising beyond the original purchase price. Dividends are investors' shares of profits made by companies whose shares the Fund has invested in. Interests are returns on investments in fixed-income securities.

 

 

 

4. Why should I invest in the CDH Balanced Fund?

 

The CDH Balanced Fund offers you optimal investment returns, without compromising on security of funds invested. You get the very best chance to invest in a blend of share investments (equity) and

fixed-income investment, for an assured future.  You get the safety and security of the money market investments, combined with the potential for higher returns typically associated with equity investments.

 

 

 

5. How much do I need to be able to invest in the CDH Balanced Fund?

 

The minimum investment that an individual can make into the CDH Balanced Fund is GH¢ 5.00. If you choose to build up your funds through a regular investment plan, the minimum monthly contribution is Gh¢ 5.00.

 

As the CDH Balanced Fund is an open-ended collective investment scheme, you can top up your investment at any point in time. There is no limit to the amount you can invest.

 

 

6. From what age can I invest in the CDH Balanced Fund?

 

Investors must be 18 years or older. Anyone below that age will require a parent or guardian to open the account in trust for him or her.

 

 

 

7. Can I invest in the CDH Balanced Fund even if I am part of Pension (Tier 2) scheme?

 

Yes. The CDH Balanced Fund is a great investment, especially if you are planning toward buying a house, a car or any other financial goal you are looking to attain. At CDH, we believe you should invest in your future. For investors who seek balance, optimal growth and security, the CDH Balanced Fund is the investment vehicle of choice.

 

 

 

8. What do I need to sign up for CDH Balanced Fund?

 

To sign up, you need the following:

• A valid identity card (e.g. Passport, Driver's license, NHIS card)
• A recent passport-size photograph
• A completed application form (available at any of our branch offices, ADB branches, Phoenix Insurance branches, selected rural and community banks, and other agents nationwide)
• Money to be invested.

 

 

 

9. Can I access the funds in my investment anytime I need money?

 

Yes. While you can access your funds anytime, it is advisable that you allow your contributions to remain in the Fund for at least 3 years. This is to ensure that you realize maximum potential gains from your investment.

 

 

 

10. What returns do I make as an investor in the CDH Balanced Fund?

 

Returns in the CDH Balanced Fund are realized from changes in the Fund's price (compared to the price that you purchased it at). For example, if you bought a share at GH¢  0.10 and the current price is GH¢ 0.25, then the return/profit on that share is:

 

GH¢ 0.25 – GHC 0.10 = GH¢ 0.15

 

Dividends and interest payments earned by the Fund's investments are reinvested in the Fund for even greater returns in the future.