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Old 27-08-2010, 05:09 PM   #1
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Posts: 2,447
Smile CIMB Max InvestSave

Hi, would like to hear your views on this new product by CIMB..

Key features:

Capital guaranteed if held to maturity
Minimum 5k with monthly $100 / Lump sum 20k
15 / 25 years tenor
Lock in highest fund price over the entire tenor
Withdraw/deposit anytime based on prevailing prices

Website: http://www.cimbbank.com.sg/index.php...37&tpt=cimb_sg

Brochure: http://www.cimbbank.com.sg/index.php...&tpt=cimb_bank

Fund info: http://www.cimbbank.com.sg/index.php...&tpt=cimb_bank

Discuss the pros and cons here!
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Old 28-08-2010, 10:11 PM   #2
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Cool

Hi, would like to hear your views on this new product by CIMB..

Key features:

Capital guaranteed if held to maturity
Minimum 5k with monthly $100 / Lump sum 20k
15 / 25 years tenor
Lock in highest fund price over the entire tenor
Withdraw/deposit anytime based on prevailing prices

Website: http://www.cimbbank.com.sg/index.php...37&tpt=cimb_sg

Brochure: http://www.cimbbank.com.sg/index.php...&tpt=cimb_bank

Fund info: http://www.cimbbank.com.sg/index.php...&tpt=cimb_bank

Discuss the pros and cons here!

returns look too good to be true and the worst case scenerio , you only
get back some bonus amount .

Not worth the risk unless you don't need the money .

I would still recommend a savings policy over this type of plan.
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Old 30-08-2010, 11:39 PM   #3
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haha.. yes the returns look good.. but the index performance is very good indeed..

No one is interested in this plan?
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Old 02-09-2010, 02:31 PM   #4
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I interested.
Plan to invest with the min 5k with 100 per month.
Trying to save it for retirement.
You can read the pros and cons at the links provided below.

http://www.lioninvestor.com/cimb-max...tured-deposit/

http://forums.ocworkbench.com/showthread.php?p=467525

Last edited by sianguy; 02-09-2010 at 02:34 PM..
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Old 14-09-2010, 12:18 PM   #5
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There was a similar product launched in Malaysia a couple of years ago.

The returns had been downhill ever since it was launched so I will treat the index returns with a huge pinch of salt. These could be backtested returns.

http://1-million-dollar-blog.com/cim...e-riv-trending
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Old 14-09-2010, 12:51 PM   #6
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I think there's another risk involved.
The health of CIMB bank itself, right? 15 years is a long time.
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Old 14-09-2010, 01:38 PM   #7
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No one can see the bank future in 15 years.
Not even MM Lky can see the country future.
We just have to plan and take action for our retirement now.

I think there's another risk involved.
The health of CIMB bank itself, right? 15 years is a long time.
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Old 14-09-2010, 08:10 PM   #8
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Hi, would like to hear your views on this new product by CIMB..

Key features:

Capital guaranteed if held to maturity
Minimum 5k with monthly $100 / Lump sum 20k
15 / 25 years tenor
Lock in highest fund price over the entire tenor
Withdraw/deposit anytime based on prevailing prices

Discuss the pros and cons here!
Jeeezus that is complicated. It's a 25yr lookback call option on a custom index with an embedded deposit and a... or is it a fund... or... hm.

I reckon it's just designed to be a fee machine for CIMB.

If you hold it for 25 years, well done you, and they take a 5% fee when the product matures. But if it goes up, they're going to call you up and encourage you to sell (and take their 5% fee). And if you don't sell, they take a 2% fee every year (it's buried in the small print in the brochure) to "cover the cost of monthly index rebalancing transactions".

That's basically a 5% sales fee and 2% trailing, which is stupendously high. I don't think the cost of the lookback option (the official term for the "lock-in-the-highest-price" feature) will make those fees worthwhile.

Contra LuckyPlate, I don't think there's anything dodgy about the returns themselves. The odds of the "worst-case scenario" happening - equities and everything going down after 25 years - are pretty slim. But once they gouge all their fees out, that's going to put quite a dent in your returns.

That index seems really opaque, though. If you like knowing what you're investing in, then it's probably not for you (especially given that they say the index "proactively trades"... does that mean it's somehow got discretion?). I'd love to know how that works rather than just blindly sticking money into it.

And Soul77 is right, you're taking CIMB's credit risk. Sure, you can sell the product before maturity if you're worried about CIMB going down... but can you spot the hidden correlated risk there?

Yeah. If CIMB's going down, then equity markets as a whole will probably be going down at the same time, and you'll be selling while the price of the product is tanking.

I think that's a marginal consideration, though.

My biggest problem with this is the chunky fees, then the opacity of the index. Too complicated for me.
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