Investment Options

[twinbaby]

IF I have $15k.

1) Buy endowment plan which cost $200mth for 5 years.
2) Invest in mutual fund which give 6% per anumn
3) Buy structured deposit which gives good return

which of these are a better options

 

[Darkzi0n]

what makes you think the fund will give u 6% return/ year?

 

[twinbaby]

what makes you think the fund will give u 6% return/ year?

assume it is good return

 

[chuanz]

How long is your investment horizon? 5yrs? 10? 25?

 

[wahkao3]

IF I have $15k.

1) Buy endowment plan which cost $200mth for 5 years.
2) Invest in mutual fund which give 6% per anumn
3) Buy structured deposit which gives good return

which of these are a better options

1) whats the return on the endowment plan?
2) 6% after management fees and hidden costs? On paper they show 6%, but when comes to payment, they will suddenly deduct all those hidden costs and you might end up with 2%
3) whats the return on the structured deposit?

 

[alexchia01]

IF I have $15k.

1) Buy endowment plan which cost $200mth for 5 years.
2) Invest in mutual fund which give 6% per anumn
3) Buy structured deposit which gives good return

which of these are a better options

None. First spend 3 years to learn investing.

Year 1 - Understand the different types of investment.
Year 2 - Test which strategy suits you most.
Year 3 - Build your mental strength to resist mistakes.

Year 4 then start investing with full capital.

 

[twinbaby]

1) whats the return on the endowment plan?
2) 6% after management fees and hidden costs? On paper they show 6%, but when comes to payment, they will suddenly deduct all those hidden costs and you might end up with 2%
3) whats the return on the structured deposit?

1) if performance is good 2x after 15 years
2) management fee is 4 %
3) 2.2% per year , 1.5% on the six year

 

[Darkzi0n]

1) if performance is good 2x after 15 years
2) management fee is 4 %
3) 2.2% per year , 1.5% on the six year

sure anot? 2x after 15 years from endowment? how good is the performance?

even if i ignore commission, management fees, and insurance cost, the return of the underlying portfolio need to be atleast 5.9% pa.

and given the nature of endowment, i believe bulk of the capital will go to high quality bonds with lower yield. the remaining will be invested in other class of assets to generate your returns. And if you factor in all the commissions, fees and charges... i guess u need to atleast 15-20% returns for 15 consecutive years.

 

[twinbaby]

sure anot? 2x after 15 years from endowment? how good is the performance?

even if i ignore commission, management fees, and insurance cost, the return of the underlying portfolio need to be atleast 5.9% pa.

and given the nature of endowment, i believe bulk of the capital will go to high quality bonds with lower yield. the remaining will be invested in other class of assets to generate your returns. And if you factor in all the commissions, fees and charges... i guess u need to atleast 15-20% returns for 15 consecutive years.

The annualised return is 5.2% per annum, although the projected rate is 3.89%.

 

[Perisher]

The annualised return is 5.2% per annum, although the projected rate is 3.89%.

Before all fees/charges etc... or after?

Which exact endowment are you referring to?
Is it most endowment or specifically this endowment?
If that's so, do you recommend this specific endowment the way Shiny Things and many others specifically recommend certain etf?

 

[K|muRa^84]

set up a simple 3-ETF portfolio and DCA $3k/year over 5 years

 

[wts2013]

IF I have $15k.

1) Buy endowment plan which cost $200mth for 5 years.
2) Invest in mutual fund which give 6% per anumn
3) Buy structured deposit which gives good return

which of these are a better options

depends on your view of the stock market direction, if u believe we are now in a bear market, then avoid any investments in the market for the time being, some "gurus" here are already out of the market (if not 100%, majority in cash).

moi know there are a few unit trusts in the market paying guaranteed 5% return pa, however there is potential risk of loss of capital if the underlying goes down, same risk for structured deposit - u need to know what is the underlying assets, moi suggest u stay out of sd. Can consider endowment as your capital is guaranteed but need to lock in for 15 years, if u can single premium wld be better, make sure it is not investment linked (ilp)

 

[Perisher]

Basically, none of the above are good products. Compared to investing in index/bonds, the risk/reward ratio is not as good. Just my 2¢.

 

[scheng1]

IF I have $15k.

1) Buy endowment plan which cost $200mth for 5 years.
2) Invest in mutual fund which give 6% per anumn
3) Buy structured deposit which gives good return

which of these are a better options

All are very lousy options. These 3 options fatten the fund managers or agents that sell you the products, and after that, there is nothing much left for you.
Either you invest in your knowledge, and later invest directly in the stock market (there are stocks with 5% to 10% dividend yield), or you wait for Singapore Saving Bond.

 

[Shiny Things]

IF I have $15k.

1) Buy endowment plan which cost $200mth for 5 years.
2) Invest in mutual fund which give 6% per anumn
3) Buy structured deposit which gives good return

which of these are a better options

None of the above.

An endowment plan's going to give you crappy returns and high fees.

The mutual fund will give you mediocre returns and high fees (and it won't actually give you 6% per annum - it might pay that much in dividends, but the capital will go up and down - probably down, to pay for that dividend).

The structured deposit will give you "all the downside and none of the upside"... and high fees.

You've had a lot of good advice already in this thread, but I'll just add my bit:
* If you're planning to spend this money within two years, leave it in the bank;
* If you're not planning to spend it within two years, but might spend it in five, you can put the cash in the Singapore Savings Bond;
* If you won't need this money for at least five years, you can put it in a mix of exchange-traded funds (like mutual funds, but they trade on the exchange and you can buy and sell them like stocks).

 

[twinbaby]

I happen to find a few examples:
Aviva MyWealthPlan
NTUC Income Harvest
TokyoMarine TM Nest Egg

Limited premium at 5 years withdrawal after 15 years. Not really 2x maybe about 1.6 to 1.7 times more. Can tell me which of these options are the best?

sure anot? 2x after 15 years from endowment? how good is the performance?

even if i ignore commission, management fees, and insurance cost, the return of the underlying portfolio need to be atleast 5.9% pa.

and given the nature of endowment, i believe bulk of the capital will go to high quality bonds with lower yield. the remaining will be invested in other class of assets to generate your returns. And if you factor in all the commissions, fees and charges... i guess u need to atleast 15-20% returns for 15 consecutive years.

 

[NiteX2]

I happen to find a few examples:
Aviva MyWealthPlan
NTUC Income Harvest
TokyoMarine TM Nest Egg

Limited premium at 5 years withdrawal after 15 years. Not really 2x maybe about 1.6 to 1.7 times more. Can tell me which of these options are the best?

Aviva MyWealthPlan offers the highest yield among the 3 you stated, both on guaranteed and non-guaranteed.

 

[MikeZhang]

I happen to find a few examples:
Aviva MyWealthPlan
NTUC Income Harvest
TokyoMarine TM Nest Egg

Limited premium at 5 years withdrawal after 15 years. Not really 2x maybe about 1.6 to 1.7 times more. Can tell me which of these options are the best?

I would say Aviva Mywealth plan. Higher capital guaranteed. Among these 3, Aviva IRR is higher.

 

[twinbaby]

Hi,

I found a similiar product called PruWealth. Is it better than Aviva MyWealthPlan?