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Capital and return guaranteed in 5-10 years

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Old 28-03-2012, 11:44 PM   #1
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Capital and return guaranteed in 5-10 years

I have placed 30k with UOB assurance 8 years ago at a return of about 3% pa. Capital and return guaranteed. It's maturing soon and I will receive abt 38k. Is there any similar deposits now? I know income growth plan is about over 1% pa for 5 yrs which I don't find attractive
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Old 29-03-2012, 12:23 AM   #2
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My company offer a 7 year lump sum endowment plan that gives a guaranteed 2.3% return p.a upon maturity. Total interest earned is 17.25% due to compounding effect. There is no non-guaranteed portion and there are early surrender charges too.

For a sum of 30K, the guaranteed maturity benefit is $ 35,175.

If you need to surrender early say at the end of the 5th year for any reason, the total interest earned is 9.87%.
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Old 29-03-2012, 09:34 AM   #3
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My company offer a 7 year lump sum endowment plan that gives a guaranteed 2.3% return p.a upon maturity. Total interest earned is 17.25% due to compounding effect. There is no non-guaranteed portion and there are early surrender charges too.

For a sum of 30K, the guaranteed maturity benefit is $ 35,175.

If you need to surrender early say at the end of the 5th year for any reason, the total interest earned is 9.87%.
Thank you for your infor. Is it HSBC.?
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Old 29-03-2012, 10:08 AM   #4
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Yup, HSBC Guaranteed Saver Plus
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Old 30-03-2012, 02:24 PM   #5
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My company offer a 7 year lump sum endowment plan that gives a guaranteed 2.3% return p.a upon maturity. Total interest earned is 17.25% due to compounding effect. There is no non-guaranteed portion and there are early surrender charges too.

For a sum of 30K, the guaranteed maturity benefit is $ 35,175.

If you need to surrender early say at the end of the 5th year for any reason, the total interest earned is 9.87%.
hsbc
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Old 30-03-2012, 04:52 PM   #6
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I have placed 30k with UOB assurance 8 years ago at a return of about 3% pa. Capital and return guaranteed. It's maturing soon and I will receive abt 38k. Is there any similar deposits now? I know income growth plan is about over 1% pa for 5 yrs which I don't find attractive
Great Eastern's
1) 5 year choice saver, capital guaranteed but return non-guaranteed 2.18% pa
2) 10 year plan endowment 5 lump sum prepayment capital not guaranteed, return not guaranteed 2.99% pa
drop me a pm if you are interested =)
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Last edited by RaPtOrZ; 30-03-2012 at 05:06 PM..
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Old 31-03-2012, 12:48 PM   #7
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Seems like hsbc still the best
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Old 31-03-2012, 08:55 PM   #8
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Suddenly all the hidden tiger start to appear in this thread.

Let me show you an alternative method on how you can achieve a capital guaranteed deposit. A 10Y government bond is yielding 1.66% pa currently. So if you put $25k into this bond, you are almost guaranteed to get back ~$30k at the end of the 10Y. And the guarantee is from the government of Singapore.

You can have the remaining $5k which you can invest in a single stock.You dont really need to crack your brain in selecting which stocks to choose. To be safe, you can choose a diversified index fund like STI. This $4k can form the non-guaranteed return of your investment.

At the end of 10Y, you will get back $30k plus some potential gains from the STI Fund. The STI fund is unlikely to return you 0 at the end of 10Y.

I know it may sound risky to you but this is exactly how the insurance companies invest in our endowment money. The insurance companies hedge our capital guaranteed portion by putting the clients money in some safe instruments.
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Old 01-04-2012, 05:26 PM   #9
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is there any min. sum for the HSBC one?
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Old 01-04-2012, 10:30 PM   #10
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yeap the minimum sum is 20 K.
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Old 01-04-2012, 10:58 PM   #11
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Suddenly all the hidden tiger start to appear in this thread.

Let me show you an alternative method on how you can achieve a capital guaranteed deposit. A 10Y government bond is yielding 1.66% pa currently. So if you put $25k into this bond, you are almost guaranteed to get back ~$30k at the end of the 10Y. And the guarantee is from the government of Singapore.

You can have the remaining $5k which you can invest in a single stock.You dont really need to crack your brain in selecting which stocks to choose. To be safe, you can choose a diversified index fund like STI. This $4k can form the non-guaranteed return of your investment.

At the end of 10Y, you will get back $30k plus some potential gains from the STI Fund. The STI fund is unlikely to return you 0 at the end of 10Y.

I know it may sound risky to you but this is exactly how the insurance companies invest in our endowment money. The insurance companies hedge our capital guaranteed portion by putting the clients money in some safe instruments.
You might as well buy a call option.
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Old 03-04-2012, 06:49 PM   #12
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You might as well buy a call option.
Firstly you need to pay for option premiums. So there is some additional cost there.

Secondly you dont earn dividends from options. With STI ETF, you can receive "yearly coupons" from the DIY Endowment.

Thirdly derivatives rank higher in terms of complexity as compared to STI ETF. And nowadays, index funds are outpacing mutual funds in terms of its popularity. Index investing is the way to go for an average person.
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