It is actually not OSK-OUB fault on the low/negative return. It is the investor's for not understanding how a protected fund works, and why it is often disadvantage to the fund holders. Capital protection does not come free, it comes at the expense of the potential gains.

Simply a protected fund works like that.

5% goes to agent (according to your charges)
90% goes to FD @ 3% p.a. (of that 5% goes to manager as annual fees (1%x5 years))
5% goes to Fund manager to buy high risk instruments like derivatives, warrant, leveraged etc according to the 'theme' (which is meaningless)

IF the bet is successful.. lets say 100% profit within 5 years....
85% of your FD will turn to 100% capital at maturity
The 5% gain profit of another 5% (100% profit)
Total receive 110% of your money put in.

IF the bet is not successful, lets say they lost it all...
85% of your FD will turn to 100% capital at maturity
Total receive 100% of your money put in. (Assuming they return your sales charge)

Smell a scam?

You can do the same without the fund manager, put 85% of your money in FD @3%, take 15% of the money go goreng in stock market or genting.

This post has been edited by gark: Jun 12 2013, 06:40 PM

@gark, great analysis and explanation!

That's why I never trust saving plan and complicated structured investment vehicle that needs commitment of X numbers of years.

mind to share ur aunty case to me ? did she manage to get back her policy?

I am having about the same experience with u. 4 years ago, i go AMBank renew my FD, the sales girl told me that the FD rate is low now and I should put my money to a capital guarantee fund that have bigger return than FD. At that time, I am totally dun know what is "mutual fund". I say yes and sign few documents for that. In later part I only find out it is "AmAsia RECOVERY Capital Guaranteed Fund", after 3 years of maturity, I earn nothing and gain back my capital last year. From this incident, I stop believe anything that the bank people say. Good thing should not come in sudden like that.

Guys, what do you think of the investment using EPF money to buy unit trust? The thing is money in EPF will generate typically around 5-6%, lower than previous norm of around 7-8%. As the pool of "fund" grows bigger in EPF, it is harder to make certain return year in year out. Hence, would it be better to put them in unit trust? But on the other hand, when buying unit trust, before even making money, one has to pay commission charges first..

Yes, every time require me to check up, as my advice to her to take the WithDraw the insurance becoz soon or later this system will absolute.

I work with Insurance company as IT, coincident the same company. So i know ppl inside still hv knowldge of the legacy system.

Sometime insurance didnt spend money to migrate old policy at old system to a new system platform becoz COST,Lack knowldge, and Turnaround employee madeup the reason no one know exist or supporting the old policy.

You cant compare Bank System vs Insurance System which more complex storing , process ,exuction of financial and accountability of each policy liability.

How insurance made money is different way bank making money by taking customer deposit and giving loan.

WTF this scares me

What you said is true but then you must not forget that many uncles and auntie are not so well versed with these investement scheme and they just trust the so-called bank's financial consultants or wealth management officers. In a way, you just believe that they are helping you to grow your welath rather than putting your money in FD and so follow their 'professional' advice.

never trust bank, becoz BANK will come sort of product to consumer market.

That how BANK think creative to gain more profit, eventual they know noting or knowledge.

Making money from Unit Trust also depends on the timing of your entry. You have to do some study on the performance of each of the unit trust funds after consulting the unit trust salesperson. They will normally recommend some funds that are historically making good returns. You need at least 5 years to see the returns.

For my case, I invested in 2005 using EPF money in Public Equity Fund and it gave me a returns of 80% when I redeemed at the start of 2013. In 2008, the investment was actually losing money when the world market crashed but somehow it recovered after that, for a gain of 80%. So, there is still risk in unit trust investment.

For the amanah saham dana pertama fund still exist or not? How should I check for it. Is provided when bought the south east asia insurance ( Tirple protection plan. is trust fund now belong to who?

Im not Uni-Asia, i wont able to help you.

I believe you best go HQ, then you will walking the whole garden to find ppl that know the system.

This post has been edited by felixmask: Jun 13 2013, 11:57 AM

ok, thanks for your help

anyone tried using philip mutual e-unit trust, is it better the Fundsupermart platform?

It's true. The unit trust sales said, after the units are bought, more or less have to park there for few years.
Well since those money cannot be withdrawn out until one retires, i guess that's probably the best thing to do.

i see their advertisement here and there
i also wonder if this one can be trusted.
if nt mistaken they also provide cfd,futures,etc

It depends on your consultant.

Sometimes no need few years. Depends n your target.

Are there any private investment funds that can give higher returns than ASB for instance and yet have a capital guarantee?

Feels like want to terminate my ASB. Is there any other investments such as ASB?

Mind to sharing with me?

Thanks.

Why do you "feel" like that?
what are the ASB returns?
what are the risks?