bro you are too fixated in your own investment
till all others have become nonsense now..
i guess deep inside you wonder why so stupid
people put money in FD, ASM, EPF ...

can see for you only targeted return matters
other things not important people's risk tolerance etc
if not........you wont say
why go buy bank capital guaranteed product might as well follow me go buy bank shares

Bro, I don't need capital guaranteed. There is a trick to make bank shares capital guaranteed. This one I learned from financial bloggers in sg. The trick is buy when it's low. The lower you can get, likely more capital guaranteed (proven by few Singaporean bloggers who hold the banks for donkey years). Some bought DBS when it was like 18. Now it's 35. Second trick is hold for donkey years until your hair turn white.

Of course US market easier to have capital protection for shares Vs Singapore side. Done that don't know how many times in US already. I have lots of shares in US that are basically free hold already. Already get back my original capital and more.

And you won't be at bank mercy and terms and conditions want to pay, don't want to pay. You know every quarter or half yearly the banks will pay you. Why? Temasek also want payment from DBS. If your boss wants payment, sure you need to find a way to pay your boss right?

For me I take care of both upside and downside. When you take care of downside your upside will be taken care of more or less automatically. Return is important so is not losing money.

I am not a text book guy. I found out that text book method only serve the banks and make them richer. Textbook finances don't work for me. Of course if you want capital guaranteed in black and white then no choice need to be slave to the bank and follow their rules (which make sure the bank always win).

For me, I keep things simple. The less terms and conditions, the better the product for me.

This post has been edited by Ramjade: Jul 1 2024, 02:04 AM

1) It's a bank structured product, which means its 'designed' to protect the bank first. Hence, the call back option.
2) The thing about SPs is that you have to fully understand the parameters. I do notice that coupon amount is staggered down, probably indication that banks are anticipating rate cuts going forward. Alliance bank is pushing this product currently, there are customers who would wanna bet on the SP getting called back and get that 6%pa
3) Its a 5-6 year product with your money tied in with no liquidity. Typically penalty will be incurred on premature termination of the contract.
4) So it depends on customers, take the risk on 5-6 years lock in period for 2-3% above FD returns (potentially out of range) or just put in yearly FD guaranteed returns.
5) It all depends on clients' risk appetite. These SPs are targeted for those FD centric clients. Moving up the risk reward ladder would be direct bonds and bond funds, in which provides some form of liquidity and yield higher than FDs. Buying into direct stocks is way high up in the risk reward ladder, but its very liquid.

2 years has passed.
If bought MLT and FLT at the time as your suggestion.
This structured product currently has a better return at the moment.

MLT was around 1.6x at time your posting
FLT was around 1.3x
Even collected 2 years dividend of MLT and FLT + SGD appreciation from 3.20 to current 3.48.
Both investment on MLT and FLT are losing out to a 11% of capital protected product.
MLT current price around 1.30
FLT around 0.95
Not mean to criticise, it was indeed a good suggestion based on interest rate environment at that time.
But things have changed due to interest rate hike afterwards.

From 2 years ago, suggestion changed from reit to bank shares....just indicated things can change over the time, due to unpredicted issues.

Fundamentally, there is no definitely right or wrong in investment.
Don't need to belittle other product, every product has its own merit and con, and serve different market segment needs and individual risk appetite.
This product is never a competitor to equities investment to start with, but a tool hedging on for die hard FD ers.

That's why we won't go to FD thread to say FD is worst, little return, eaten by inflation etc, should investing in xyz for better return, because FD has its purpose even it has the worst return.
Same with EPF, and many other products, you don't go to every thread to say ABC banks shares investment is bestest, others are nonsense. Because every product has its own purpose and intend and serve different individual needs.

We can't chase every penny out there. Even abc is the alpha investment, we also need to park some money in FD that has poor return. We can't say put in FD is silly as we don't know how future is unfolding.
Also, asset diversification may needed by some as their financial management and FD, structured product even insurance may part of their financial management.

Thanks. Actually I hold zero reits now. Once I realise that increment of negative-2%p.a for dividend and you will become the ATM to the reits somewhere down the road, not for me. Even if interest rates goes down to zero again (which it won't), I won't have any reits in my portfolio. I will not become an ATM machine.

I have restructured my portfolio now so that regardless of interest rate, I will be paid and every year they will increase their payment to me with minimum of 10%p.a.increment. My US, EU stocks payout ratio all less than 50%. Some payout like 20% only. Very sustainable going forward.

This post has been edited by Ramjade: Jul 1 2024, 01:01 PM

bro
i dont think you get the message.

if you cant see it by now
here , dont go to every other thread patronizing others
the superiority of your method.


That's why we won't go to FD thread to say FD is worst, little return, eaten by inflation etc, should investing in xyz for better return, because FD has its purpose even it has the worst return.
Same with EPF, and many other products, you don't go to every thread to say ABC banks shares investment is bestest, others are nonsense. Because every product has its own purpose and intend and serve different individual needs.

Bro, that's why you don't see me in FDs or FSM anymore. I don't bother about them anymore.

My FSM is only for PRS and EPF investment.

For EPF, I see people put in 100k into EPF make me sad to bo honest.

you must remember no matter how much homework you did
you cant be sure that must be right


so take a step back and
start to realise others have their own ways
not everyone must follow your method
in fact many have gone far beyond your stage of earning

FD ASM EPF etc is here to stay
no matter how sad you be

point is
if you have not over-stepped your boundary
why would cheroy lecture you above?
and liked by many others.

True. Different strokes for different people. For me, I optimise my finances where possible. FD, ASM, EPF is not making money working more efficiently for me.