Asset Allocation of Hong Kong Limited Partnership Funds and Immigration Scheme (Compliance)
- FOFA
- Jun 1, 2024
- 2 min read
Updated: Nov 7, 2024

Hong Kong Limited Partnership Fund - a new option for diversified investments
As an international financial center, Hong Kong provides diversified investment options, among which Limited Partnership Fund (LPF) is an emerging investment tool in recent years. LPF has the advantages of strong flexibility and high tax efficiency, and is increasingly favored by investors.
LPF is a fund with a limited partnership structure. The general partner (GP) is responsible for the management and operation of the fund, while the limited partners (LP) provide capital investment. This structure allows fund managers to better utilize their professional capabilities and create higher investment returns for investors. At the same time, LPF also enjoys offshore tax benefits similar to other funds, which can effectively reduce investment costs.
For investors pursuing a diversified investment portfolio, LPF is undoubtedly a good choice. It can invest in various assets, such as stocks, bonds, real estate, etc., helping investors diversify risks and increase overall investment returns. At the same time, the flexibility of LPF also enables it to quickly capture market opportunities, make strategic adjustments, and create more value for investors.
Several investment thresholds for Hong Kong limited partnership funds:
Minimum investment amount, generally speaking, as a professional investor, an investor must invest a minimum of HK$1 million or more to participate in a Hong Kong limited partnership fund. The most suitable amount for investor immigration scheme is HK$10 million.
Investors participating in limited partnership funds need to meet the qualification requirements for "professional investors". This means that they need to have certain financial knowledge and investment experience, and have strong risk tolerance.
Lockup period restrictions - Most limited partnership funds have a relatively long lockup period, usually 8 years. Therefore, investors need to have sufficient funds and patience to maintain the investments.
Management fee - limited partnership funds usually charge higher management fees and performance fees, generally around 2-4% and 20% respectively. These fees may exceed those of traditional fund products, but in exchange for reasonable returns from a professional management team.
The investment return rate of limited partnership funds is usually higher for several reasons:
Flexible investment strategies - Limited partnership funds have a more flexible investment strategy than traditional funds. Fund managers can timely adjust investment directions and proportions according to changes in the market environment to seize more investment opportunities. This will help improve overall investment returns.
Professional management team - Limited partnership funds are usually managed and operated by experienced fund managers and investment teams. They have profound industry knowledge and investment insights, and can make more accurate investment decisions and create higher returns for investors.
Application of Hedging Strategies - Some limited partnership funds use hedging strategies, such as short selling, arbitrage, etc., in order to obtain more stable returns in a volatile market environment. This professional investment technique can effectively reduce investment risks and increase overall returns.
Tax Preferential - Hong Kong Limited Partnership Funds enjoy good offshore tax preferential policies, which can greatly increase the after-tax returns of investments. This is one of the important reasons why its investment yield is higher than that of traditional funds.
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