Q&A

Question: What is the difference between mortgage funds and other investments?

Term deposit

You deposit your money (capital) with a speciality regulated financial institution such s a bank, building society or credit union for a fixed term in return for a fixed rate of interest.

Debenture

You lend your money to a business, usually for a fixed term. You are not guaranteed a fixed rate of interest of return of your capital. The business might invest in mortgages and/or property.

Mortgage fund

You invest money in a mortgage trust. You might not be able to withdraw from the fund at short notice. You are not guaranteed a fixed rate of interest or return of your capital. The mortgage funds invests in residential and commercial mortgages.

Property trust

You invest money in a property trust. You only get your money back when the property trust ends or if you have a right to withdraw. You are not guaranteed a return on your investment or the return of your capital. The property trust invests directly in property, rather than in mortgages over  property.

For more detailed information on how the Future Mortgage Income Fund operates please read the PDS

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