Structured Product with Guaranteed Return

Hi Mr. Tan,

Do you know of any financial instituton that offers portfolio management service that guarantees a minimum return like this offer by Bank X to its private banking clients, "The Guaranteed Mandate: Under this mandate, Bank X guarantees a minimum return or income, while still allowing you to benefit from any upward movements in equity markets."

We're looking at a minimum return of 6% per annum, for a capital sum of S$500,000.

REPLY

If you wish to have a guaranteed return, it is best to buy government bonds. I do not recommend investing in a product that gives a guaranteed return, as it is likely to give a "final return" that is lower than government bonds.

Read this FAQ:
http://www.tankinlian.com/faq/sinvest.html