I met an honest investment banker during the Chinese New Year holiday. His colleagues in the firm design structured products to be sold to retail customers.
He strongly felt that it is not a suitable product for retail investors. The product was designed to make profit for the issuing bank. The customer is likely to get a poor return on the maturity of the product, quite likely to be less than bank deposit.
The customers are attracted to the capital guarantee, but they do not realise that they are giving up a lot of the potential gain.
He said that the issuing banks made million of dollars on these products, but they are at the expense of the retail customers.
He advised many of his personal friends not to invest in these products. It is better to invest in the stocks directly and take the investment risk. If not, they should just invest in bonds and get a fixed rate of interest.
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02/18 - 02/25
- Take a flexible and transparent loan
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- Center for Seniors
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- Japan has a low birth rate
- A larger population of Singaporeans
- Short term interest rate increased in recent years...
- Why structured products are not popular in America...
- Decreasing term is really affordable
- Stop paying premiums on your whole life policy
- My Chinese name, Liang
- Does car insurance policy cover car pooling?
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- Valuing their labour
- Workfare Bonus
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- I treat all the lanes fairly
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- Better to buy term and invest the difference
- An honest investment banker
- My wife's cousin migrated to Australia
- Is private banking anything special
- Use a short word
- Why do my agents say that my insurance is not enou...
- Buy term and invest the difference
- My honest opinion
- Trailer Fee
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