Criticise This Fund.

[jljh888]

How confident are you of 10%?
The fund factsheet clearly states 5.38% since H2-SGD was incepted in July 2013.
Want to know what's scary? 5 years annualized returns is 4.71%, 3 years is... 1.48%.
Again, how confident are you of 10% for the next 10 years?

Now, H2-SGD has been paying annualized dividends of ~7.87% per year, which is very close to the 7.65% I calculated earlier to provide $4000/month for the first payout. However this ~7.87% will be calculated against the value of the fund when the dividend is being paid out. If the value of the fund continually goes down because it pays out more dividends than it makes from the investment, then the monthly payout will just gradually go down over time.

I based on this year monthly dividend payout for the 10%

 

[Leaden]

Yes. From pru .

I think simple answer is don't buy the fund and stop talking to the insurer.
I assume you already know there'll be initial or sales charges when you buy the fund?

Better to buy funds from Poems, DollarDex, UOB KH, or FSMOne.
Most don't have sales charges, platform fees, switching fees (FSMOne has platform fees for using cash).
And you can use them to buy funds with lesser agent bank fees using CPF, as all 4 are Investment Administrators.

There are funds with better returns and lower expense ratio, eg,
Infinity U.S. 500 Stock Index Fund SGD Class

• 10 year p.a = 11.4%
• Expense ratio = 0.61%

Infinity Global Stock Index Fund SGD Class C

• 10 year p.a = 8.4%
• Expense ratio = 0.44%

 

[tangent314]

I based on this year monthly dividend payout for the 10%

You are confusing dividend payout with fund performance.
They are two VERY different things.

 

[limster]

I use this calculation.

let say 1 year 50k @ 10% yearly

Look at the historical return:
1 year return is 3.1%
2-3 year return is negative
4 year return is 3.8%
5 year return is 5.4%
10 year return is 4.8%

Based on this historical performance, you are projecting that this fund will give you 10% return a year for the next 10 years.

But really, each investor has to make his own decision. If you think you are going to get 10% a year, then PLEASE BUY because 10% a year is a great return!

Plus "principal guaranteed' on your death (have you confirmed that if you die at 85 years old, you will still get the $500k death benefit?)

After you buy this from Pru, you can look forward to your 10% return and I look forward to collecting my Prudential dividend. Its a win-win situation.

 

[s0crates]

I think simple answer is don't buy the fund and stop talking to the insurer.
I assume you already know there'll be initial or sales charges when you buy the fund?

Better to buy funds from Poems, DollarDex, UOB KH, or FSMOne.
Most don't have sales charges, platform fees, switching fees (FSMOne has platform fees for using cash).
And you can use them to buy funds with lesser agent bank fees using CPF, as all 4 are Investment Administrators.

There are funds with better returns and lower expense ratio, eg,
Infinity U.S. 500 Stock Index Fund SGD Class

• 10 year p.a = 11.4%
• Expense ratio = 0.61%

Infinity Global Stock Index Fund SGD Class C

• 10 year p.a = 8.4%
• Expense ratio = 0.44%

All the platforms you recommended has higher cost than endowus. Endowus + Amundi msci world total expense ratio only 0.4% p.a.

Can offset fees from Endowus sign-up offer also.

 

[Mephist0pheLes]

Look at the historical return:
1 year return is 3.1%
2-3 year return is negative
4 year return is 3.8%
5 year return is 5.4%
10 year return is 4.8%

Based on this historical performance, you are projecting that this fund will give you 10% return a year for the next 10 years.

But really, each investor has to make his own decision. If you think you are going to get 10% a year, then PLEASE BUY because 10% a year is a great return!

Plus "principal guaranteed' on your death (have you confirmed that if you die at 85 years old, you will still get the $500k death benefit?)

After you buy this from Pru, you can look forward to your 10% return and I look forward to collecting my Prudential dividend. Its a win-win situation.

and then start a thread 5 years later asking if sld cut loss

 

[sglandscape]

Actually for bond fund, looking at historical return not a good metric now since short end rates have shot up. Could look at the NAV vs weighted yield over time to make a fairer assessment.

For 1y and 2y performance comfirm negative, because existing holdings would have negative mark to market when rates shot up.

 

[tangent314]

This isn't a bond fund. This fund is 33% equities, 33% bonds, 33% convertible bonds.

We seldom see convertible bonds being discussed, but they recently hit the news in a pretty big way... https://www.washingtonpost.com/business/2023/03/20/coco-bonds-credit-suisse-banks/

 

[BBCWatcher]

Does anyone think it’s realistic to project 10% annualized returns (in nominal Singapore dollar terms) — and after hefty sales charges and management expenses?

Isn’t cannabis illegal in Singapore?

 

[fly1111]

Recently has been approach by some agents to get this plan - US Dividend Wealth Fund.

From the appointment, my understanding is that I would have to place x amount , let say $50,000 yearly.

So from Year 0 - Year 10, I would invest $500,000 and for this 10 years, if I re-invest back the returns in this 10 years.

From the 11th year onwards, I would get a dividend of $4,000 monthly for lifetime.

Even so, the next generation of mine could also continue the payout.

It sounds too good to be true, is there any thing that I've missed out ?

Nv but any investment from insurance agent… so many years liao… ppl still dun learn… the same thing he is selling you. You can get it from other online platform and 10x cheaper….

 

[fly1111]

What detail u need? This is how the advisor pitch, and I am posting here to understand further how this policy works and isit as good as what the advisor mention

Only trust black and white…

 

[dork32]

I use this calculation.

let say 1 year 50k @ 10% yearly

10 years later will be 926622

on the 11th year, the 926622 will still have a 10% interest = ~92k

if one withdraw 4K monthly, yearly is 48k , so there is still balance to compound for the years going forward.

i think your maths very wrong. 1 year 10%, 10 years 100%. even if you ignore the effects of compounding. min 1 mil after 10 years.

and at 10%, the effects of compounding is very significant

 

[dork32]

the thing is this, when it comes to large numbers, our brain is not wired to understand if it is a good deal or not. you have to tell us the irr of this investment. then we can say whether it is worth it or not.

 

[jljh888]

the thing is this, when it comes to large numbers, our brain is not wired to understand if it is a good deal or not. you have to tell us the irr of this investment. then we can say whether it is worth it or not.

What is IRR

 

[sglandscape]

What is IRR

internal rate of return