Today i hear from one of the CIMB INVESTMENT manager say CIMBISLAMIC this month introduce one product call "7-YEAR CALLABLE ISLAMIC RANGE ACCRUAL NID-I" which this week will given 6.80% for all the investor. But the manager say this product will change the interest every week.

Any expert or any pro investor pls give comment and what is the risk for this product. Someone in CIMB investment bank give me comfirmation on this product whether is truth or not.

The whole information pls enclosed the attachment.

This post has been edited by 500Kmission: Apr 4 2011, 06:42 PM


Attached thumbnail(s)

yah true and real but with 1001 condition to follow .....

Indicative rate is not guaranteed.

somemore its capital protected.

u need to understand how capital protected instrument work.

u also can see the track record of the CIMB launched capital protected instrument how is the performance.

what u mean 1001 condition?

---

Added on February 28, 2011, 11:40 pmtell me if the indicate rate is fixed for 6 years, then tell me is there diff btw guarantee and fixed?

This post has been edited by 500Kmission: Feb 28 2011, 11:40 PM

just search google dont lazy

As a general rule, Islamic banks only
give an indicative rate of profit from a
deposit and the amount may change
upon maturity, as it depends on the
profits made.

http://normandy.com.my/normandy/system/pdf...ng%20Income.pdf

Your statement (in bold) is wrong to start with.

6.8% only will be given, if KLIBOR behave within the condition set.
&
it is callable.

I invested in this similar type of investment (KLIBOR based, and callable, not CIMB one).
Guess what, they decided to call back way before the maturity of the structured investment, after 2-3 years running, after situation not favourable.
Return the money to you back earlier, and close the fund.

Since then I never want to invest any investment that is callable.

Risk
The capital is not principal guaranteed if you premature withdraw the fund. (except it is called by the banks)
The investment is under structured type of investment, which is not insured under PIDM
You may get little return (way less than FD rate), is situation not favourable to the fund objective or condition set.

I might be wrong in the interpretation of the fund, as detail of funds posted is not complete.

The last bold warning had stated it clearly and I do respect them for being honest.
i.e.
1) Capital is guaranteed only if you held it to maturity i.e. 7 years.
2) Capital is not guaranteed if one decides to redeem earlier.
3) One may even loose his initial investment if earlier redemption is done because there's early redemption penalties as well as losses.

now u see 1001 condition ? too many hidden on the contract ....

Do u think that the KILBOR will more than 4.50% within 7 years? will CIMB bankrupt within 7 years? If the bank call back, you did not earn the rest of the year interest, but u have earn 2-3 year interest, right?

---

Added on March 1, 2011, 12:10 amIf you have the money, do you think that the 6.8% p.a. is not enough for 7 years which is pay quarterly and no need to take care expenses and profit?

This post has been edited by 500Kmission: Mar 1 2011, 12:10 AM

You never know or can predict, somemore 7 years down the road
With inflation looming, the tendency of Klibor going higher is there.

If Klibor does surge beyond the condition set after 2-3 years, and never go down again, the fund may be running for the rest tenure until 7 years without or little rate (I don't know if there is any payout if situation not favourable, as little info given), if the bank doesn't wish to call back.

You may earn 2-3 years if situation favourable, but you need to commit 7 years in the first place, aka you must set aside the fund for 7 years, (except when there is early call).
It is about commitment of 7 years in the first place, which one needs to bare in mind.

One situation is, you may earn 6.8% for 2-3 years but no/little for the rest 4-5 years, while cannot withdraw a single cent out of it, it is good?

Yes, best situation is earning 6.8% for 7 years, but it must fulfill the condition set, and you wish it is not call back.

I don't mean encourage or discourage, just one must understand the commitment taken.

---

Added on March 1, 2011, 12:34 amPS: I considered myself highly interest in it, if it is without callable clause.


This post has been edited by cherroy: Mar 1 2011, 12:34 AM

thanks for the comment.

It says The actual Lower/Upper Limits and Indicative Profit Rate will be determined by the Issuer on the issue date

and Issue Date : To be determined by the bank.

Does that mean its not being issued at the moment, and even if you buy in the rate displayed may no longer be valid by the time its issued?

Sounds like a medium to short term fixed income kind of instrument.

NED-i = Negotiable Instrument of Debt (i = islamic)

Callable = the issuer can terminate the fund anytime.

Better to buy Bond funds, less risky.

Xuzen

In my opinion, skip this investment scheme la. I'm no expert, but in my 10 years stock/ut experience, you can easily beat 8% PA nett year after year through common stocks, somemore with withdrawal flexibility. Do some homework and there's a lot of jewels out there. Don't waste your time with this 6.8%. Invest in stock is not difficult, trading is! Good luck

If u dont know this investment scheme, pls shut up and go for your stock analysis. Not all ppl interest on the stock. I share this topic because i know market got this product, so that all ppl can buy and share risk information to each other. Whether invest or not is their own business.

If you withdraw it at maturity, it is capital guarantee.

It is only capital guaranteed if held until maturity or being called back.

If you are the one initial and terminate before maturity, normally there is clause of penalty charge.

There is no such thing of "withdraw at maturity"
Maturity means the product cease and the money return to you already.
You don't need to "withdraw"

Sorry boss for using wrong word.

I have buy and pay this product (7-YEAR CALLABLE ISLAMIC RANGE ACCRUAL NID-I") from CIMB bank on 3.3.2011. Until now, the certificate still have not give to me. when i ask the relationship manager, he say it will give me when the time headquarter give him. I wonder it already 1 MONTH still not yet done process.

what shd i do if he lie to me?
Did anyone buy this product? If yes, how long did CIMB need to process?

what is this product??? made sure the transaction is done properly... as fraud does happen in the bank...

Capital protected is not the same with capital guaranteed.

YES... i finally get the certificate of this product. But other problem come out - No name or I/C or anything say the certificate is my certificate except it attached with one set of A4 copy. The set copy have mention the certificate no and my name, but set copy just have signature no company.

My idea is whether i should ask the CIMB manager sign every pages of the A4 set copy for my safe purpose.

The reason why i want to be careful, is i dont know the person who offer this product to me and certificate no noted my name.

I bought it last year, it took about 3 months to get the certificate. That's CIMB for you. But the profit was calculated from the day I signed up. I was happy with it until today. It seems that my Rm 1.00 value has gone down to 89 sen or so, which means even though they pay 6.7 ( that's my rate), it would be multiplied by the value. Well we'll see how it goes. I am not very finance savvy to dabble in stock, so this is probably next best to unit trusts.

Is your cert with no name and only cert no only? then the cert no link to A4 paper which have your name?
How do you prove that is your cerf? maybe they take other ppl cerf attach with A4 with your name.

---

Added on March 12, 2012, 9:10 pmCant believe this product call back just one year

This post has been edited by 500Kmission: Mar 12 2012, 09:10 PM

Yesterday went to HL withdraw FD. Then the sales person push this similiar product as well, something following the Klibor range to pay out 5.18%pa.

Anybody got experience?

Parking...