A month ago, we sent a letter to our existing policyholders to top up their investment in our fund, and take advantage of the recent drop in the stockmarkets. This allowed them to make additinal investment at a lower price.
A large number of policyholders took this advice and topped up their investment. They have benefitted from the move.
During the past 4 weeks, the investment funds managed by NTUC Income have earned a return of between 2% to 5%. The highest increase is for the Singapore Equity fund.
These are the positive factors leading to the improved sentiment over the past month, globally and in Singapore.
It is still a good time to invest in the funds, as the prices have not recovered to their earlier highs.
Tan Kin Lian
Chief Executive Officer
NTUC Income
Tan Kin Lian: "It is still a good time to invest in the funds, as the prices have not recovered to their earlier highs."
ReplyDeleteMr. Tan, I guess that is quite a "misleading" statement. Are you sure we can call it "a good time" because "they have not reach their PREVIOUS highs" ??? At best, we can only conclude that it MIGHT be a good time, as you and I know, PAST performances do NOT guarantee future results!
Dear James Ong,
ReplyDeleteThank you for your observation. Even if the price drops, it does not matter. It is a matter of time before it recovers.
I encourage people to invest for the long term, 10 years or more.
It is the duty of the financial expert (and my colleages belong to this category), to give their views. After all, they should be more knowledgeable than the average person.
In our letter, we do tell them the risk to our policyholders. Some decided to act. Others do not.