Wednesday, July 12, 2006

Customers want assurance that the investment is safe


In your posting, you said: investors have over-reacted to the concerns for inflation. The correction was exaggerated by selling and unwinding of leverage positions by hedge funds.

I hope that NTUC can help policy holder monitor the fund should like should ensure that none of the find wil lose money.

I don't trust (three company names deleted) because I get the feeling that their agents just want to earn my money and don't care about my investment.

After attending your talk, I want to invest with NTUC. I need assurance that I will not lose my hard earn CPF money and cash savings.


If you invest in a large well diversified fund, eg the combined fund, for 10 years or longer, the risk is actually very small. While the investments may go up in some years, and down in other years, the average over several years should be better than the return on bonds and other safe investments.

By investing in a large fund, you get diversification and is not exposed to bad stock

I also have most of my personal savings invested in our combined fund. I understand the concern of all investors to have an attractive return and to avoid excessive risk.


Dear Mr Tan,

Thank you so much for your reply. I really appreciate to have an exemplary figure like you who is so humble to attend to the public's enquries promptly & with great sincerity.

1 comment:

Justin Lim said...

By investing in a diverse fund and having a long term horizon, you actually lower the risk of your investment.

Lowering the Risk DOES NOT equal to Eliminating it. Risk still exist.
No person (including Soros) can guarentee you that you will not lose your principle amount in any investment. Unless they are going to pay you thru their own pockets if you do....make sure you get a black & white from them =D

The additional "profits" you earn (eg over the interest that you get from a fixed deposit with a bank) is the "reward" that you get for taking the additional risk.

Bottom Line:
No such thing as Safe Investment with High Returns. The person that tells you this is simplying telling half the story.

If you can get higher returns with a safe fund, wouldn't CPF Board invests their excess $$$ into these funds???

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