Back to the old days of guaranteed products. Before investing in these products, make sure that the charges are low and you can get a reasonable yield. Read here.
Don't be fooled again. Surely consumers don't have short memory. Guaranteed products are guaranteed to lose money for you. You are better off doing your own guaranteeing. Eg; if you are willing to invest $1000, invest $952 into a FD paying 1% for 5 years and buy a $1 4D for 48 times spread over 5 years.If you don't strike the 4D you get back your capital of $1000 and if you do strike a first prize of $2000 you triple your capital. Isn't this better than using zero coupon call option strategy? No early exit penalty; potential loss is only $48 .Potential gain is $2000.If held to maturity 100% return of capital. Does it sound good to you? Like to place your 'bet'?
The current guaranteed products by HSBC, NTUC, AIA, PRU, TMAsia and GE will guarantee that you lose money. They may be better than the bank but ONLY better than the bank doesn't mean is good. It is only better beccuase these products lose lesser than the banks but it is still loss. Remember ALL GUARANTEED PRODUCTS GAURANTEE LOSS.
Don't be fooled again. Surely consumers don't have short memory.
ReplyDeleteGuaranteed products are guaranteed to lose money for you.
You are better off doing your own guaranteeing.
Eg; if you are willing to invest $1000, invest $952 into a FD paying 1% for 5 years and buy a $1 4D for 48 times spread over 5 years.If you don't strike the 4D you get back your capital of $1000 and if you do strike a first prize of $2000 you triple your capital.
Isn't this better than using zero coupon call option strategy?
No early exit penalty; potential loss is only $48 .Potential gain is $2000.If held to maturity 100% return of capital.
Does it sound good to you? Like to place your 'bet'?
The products have taken new packaging and a different shape like many insurance products. They are coming back to con people.
ReplyDeleteThe current guaranteed products by HSBC, NTUC, AIA, PRU, TMAsia and GE will guarantee that you lose money.
ReplyDeleteThey may be better than the bank but ONLY better than the bank doesn't mean is good. It is only better beccuase these products lose lesser than the banks but it is still loss.
Remember ALL GUARANTEED PRODUCTS GAURANTEE LOSS.