Sunday, October 28, 2007

Lesson about structured products

1. Do not invest in structured products, such as swing fund or vitamin account.
2. The hidden cost is high.
3. You are locked in for a long period of 5 years or longer
4. You get a poor return, of less than 1% per year
5. You would have earned much more by investing in government bonds
Posted by at

2 comments:

Khiat Han Hwee Adrian said...

The salesperson are usually trained to press on the hot button of the consumers.

Investors are risk adverse and fear losing. The "Capital Guaranteed" and "Potential Higher returns than FD" factors in convincing the person to take up the plan.

October 30, 2007 2:01 AM
Anonymous said...

like revosave you press the fear button? No wonder , there is some take up rate. Unwary and suckers have been pressed and when they come around they will be sorry for being idiots. Just don't understand why they buy.

October 31, 2007 2:18 PM

Post a Comment

Subscribe to: Post Comments (Atom)

Blog Archive