Sheridan, I was tempted to buy because the rates are much better than FD currently - 2.5-3% - So this is guaranteed 8% so its 3x better!

At 8%, you would technically double your money in 9 years and sell off the lot. (if the CPO price is higher, you even make back your money quicker!)

Rule 72 is applicable for investment with compounding interest. AFAIK, CHGS is paying the return to the investors yearly so the investors do not get interest on the return, so it will be simple interest on the principal(Correct me if I am wrong).

I then thought the better against it because being young, I can afford to take greater risks for higher returns in the stock market but this is a good investment for people who are looking to diversify and get a stable returns.

The other apprehension I have is the fact that its not a 'proven' thing and there are other ways to get a 8% return - by investing in REITs which have been around for quite sometime vs this new scheme which I see as untested and unproven.

My rationale also was if I want to invest in palm oil, there would be better ways, (read: higher risk and better returns) by buying plantation shares on the stock market or if I wanted to go really risky - play futures.

That's why I initially was captivated by it but then did not go through with it.