Can I change my fund to reduce risk?

Dear Mr Tan

I have the followings 2 policies which was purchased 13 years ago.

1) Investment Linked Insurance

This living policy was bought in 1996 and the premium invest in the Singapore Managed Fund, as at today cash value returns is about breakeven of the total premium I had paid and I believe this is becasue of the recent good performance of the SGX.

Please advice how can I protect the cash value as it depends on the performance of the stock markets. Should I switch to another fund eg their Asia or Global Fund?.

2) Asian Equity Fund

I have invested in this fund for about 10 years the value now is about 70% more than the capital I have invested. Should I cash out this investment now or leave it?

W

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Dear W

I suggest the you ask the insurance company to tell you the charges that you have to bear for the following:

* annual fund management fee
* mortality charge

You should also compare the performance of the fund with similar funds in the same category in the CPFIS website.

It is difficult to make a judgement on timing. I decided to sell my STI tracker fund about two months ago, and the market has increased by 20% since.

In my case, I felt that the market was too high and decided to take profit. I invested my proceeds in the money market fund of NTUC Income to earn 3% interest.
See www.income.coop/faq on Flexi Cash.

All the best for your decision.

Tan Kin Lian