Another new structured product

Hi Mr Tan,
I received an email about Jubilee Series 8 Notes. In the factsheet, it is stated that principal is 100% protected if held until maturity date. May I know the difference between Capital Protected and Capital Guaranteed? What other risks that I should be made aware of?

I received this reply from the marketing officer:

Good News as the interest rate has been revised from the original 2.7% to currently 3.15%. Its selling out fast. Please call my mobile phone now. Principal protected - there is a condition. You have to hold this note till maturity date of 2.5 years. Principal guaranteed - misleading that its guaranteed at all times under all conditions, even upon early termination. No hidden risks. Only thing is have to hold till maturity to avoid principal loss. Interest rate is guaranteed.

JP

REPLY
From my reading, "principal protected" means that it is "not guaranteed". So, I do not really understand what "principal protected" really means. Someone explained to me previously that it means "we will do our best to protect your principal, but we do not give any guarantee". I always avoid investments that I do not understand.

I avoid structured financial products. I do not let the issuer of the structured product take away my investment gain through their high charges. My views are explained in this FAQ:
http://www.tankinlian.com/faq/sinvest.html

I prefer to invest in Government bonds (low risk, 3% or more), or well rated corporate bonds (4-5%) or shares (high risk, high reward). I pay low cost and get the actual return (commenusrate with risk).

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