I've been approached by a friend to invest in the NTUC Income Asian Bond Fund.
Being not a savvy investor even after reading its fine prints I'm still uncertain
whether this is a good product to take up. Would you be kind enough to advise
if this bond fund is profitable & safe for a low-risk appetite investor?
My answer is given here:
Being not a savvy investor even after reading its fine prints I'm still uncertain
whether this is a good product to take up. Would you be kind enough to advise
if this bond fund is profitable & safe for a low-risk appetite investor?
My answer is given here:
2 comments:
Investors interested in Bonds may check up Fidelity Asian High Yield Income Hedged Bond Fund in S$, one of the recommended Funds on Fundsupermart Investment Portfolio. But dun buy from this distributor, as they slap on a Platform Fee payable quarterly which you have to pay every quarter, a huge sum that cuts into your returns. But you dun pay the initial Sales charge either.
Buy from Bank Distributors, but the heart stopping initial Sales Fee is 5% and an annual Management Fee of 1% or 1.5% (incorporated into the fluctuating prices), returns which are paid monthly is a comforting 5% yearly returns so far.
Tip here, certain foreign Banks like Maybank, you could negotiate a lower Sales Charge if you are a Priority Client. Most American Banks anticipating Interest rate rise in coming months, Bond prices rise inversely with Interest rate, i.e. if Interest rate rises, Bond prices fall, so if Janet announces an interest rate rise, bond prices would drop on knee jerk reaction, then quickly take action, dun wait.
Presently this Fidelity Bond is well below issue price of S$1, around 0.93 cents, tempting you to enter now. Keep an eye on this Bond Price Chart on Internet.
Motto here, rather pay the initial Sales Charge, avoid being strangled paying the Platform Fee every quarter.
Make your own decision to invest, dun listen to your Bank relationship Manager or your Insurer, they have to meet Sales Quota to justify their Performance Rating.
Only allocate a small amount for newbies, RM would try to pester you to allocate more, dun get duped like Swiber Investor Elaine, all Bonds carry risks, better to buy Fidelity Bond, more diversified in its Bonds portfolio, which may give you up to 5% returns certain years. Believe in the Averaging Concept, if prices head down, buy a bit more.
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