Monday, August 04, 2008

Vitamin Account

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
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2 comments:

Raymond T said...

Structured products suck, and they suck big time.

I wonder if it is time to go into Foreign Currency Time Deposits.

Kiwi and Aussie currencies are falling like nobody's bizness :)

August 04, 2008 12:24 PM
hongjun said...

- The Aussie dollar had peaked and that interest rates would come down because mortgage delinquencies are at a 12-year high.

- 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

August 04, 2008 10:41 PM

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