Avoid betting on financial products

Many new financial products are advertised in the daily newspapers. Most of them involve an element of betting. Your return depends on the performance of various shares over the next few years.

You should avoid "investing" in these products. Often, the bet is to the consumer's disadvantage. The regulator does not vet that the risk and reward has been designed fairly for the consumer.

You can read my views of these structured products in my website.

If you wish to take a bet, it is better to go to the casino or to Singapore Pools. You will probably get better odds for the bet.

Lesson: To get a better return on your investments, you should choose an equity fund, bond fund or money market fund. You will get the actual returns from the fund, less the charges. You should find out what the charges are. Make sure that it is not more than 1.5% per annum. Better still, go for charges that are less than 1%.