My friend invested SGD 40,000 in a Vitamin Account offered by a bank. This is a structured product. The total payout for the past 3 years is 4.1%. The current value is 89.5%. The investor lost 6.4% for the past 3 years. During this time, the stockmarket showed a positive gain.
Lesson: Avoid all types of structured product, even if it is capital guaranteed. They are likely to give a poor yield if you keep it to maturity (5 years). If you terminate it before maturity, you are likely to suffer a loss.
Read this FAQ:
http://www.tankinlian.com/faq/sinvest.html
Structured products suck, and they suck big time.
ReplyDeleteI wonder if it is time to go into Foreign Currency Time Deposits.
Kiwi and Aussie currencies are falling like nobody's bizness :)
- The Aussie dollar had peaked and that interest rates would come down because mortgage delinquencies are at a 12-year high.
ReplyDelete- The New Zealand dollar was described as the Asia-Pacific most vulnerable currency as interest rates were cut for the first time in five years
The Straits Times, 29 Jul 2008