Approached by OCBC RM for structured investment for 5 years which guarantees 5% p.a. with 3 monthly interest payment , IF no CREDIT EVENT occurs. Minimum to put in is RM 250K .
Anyone else put in ?

Don't think it is guaranteed as such. Is it Klibor related?

Try to avoid any investment recommended by your RM for all PB.. either it is not to your advantage OR you can get cheaper alternatives elsewhere.

The commission for the RM is pretty high..

RM is only good for higher rate FD deals and/or freebies from the bank.

This post has been edited by gark: Jan 23 2017, 01:57 PM

Not klibor related. Uses standard chartered bank as the product. Some sort of an investment product.

The alternative you're speaking of is through fsm I presume ?

If you can give more info on the product, we can slice and dice it for you.

Haha ok will upload the info shortly.

FSM don't carry that, I think

MY experiecne with Stan chart is good. I rate them 4/5 stars. For international banking I always prefer Stanchart.
The one and only problem that I found with Stanchart is that they have only minimum number of branches in rural areas.
The another thing about the Stanchart is about their poor security features in online banking. Hope they will fix it in future.

You can DIY your own structured product...steps below, change the figure to suit

1. Lets say you want a 100% capital guaranteed structured product for 5 years, and ready to invest RM10K
2. From the RM 10K, place RM 8,220 in FD for 5 years @ 4% (which will become RM 10K in 5 years)
3. Remaining RM 1,780 you can go punt into any high risk investment (shares, UT, Leveraged ETF, options, warrants, etc etc)
4. If you manage to lose it all, you still get back your 10K in 5 years ( hence capital guaranteed)
5. If manage to win some in 5 years then it becomes your profit (or they call it interest...)

Win

This post has been edited by gark: Jan 23 2017, 02:27 PM

edited for you.

That is no longer capital guaranteed

lol true that. it all boils down to the person's risk appetite and age profile. want super safe give your money to banks lor but returns macam peanuts

So this is what was offered. It's a callable credit linked structured investment which uses standard chartered bank as the reference entity. 5 years to be held onto and minimum amount to put in is RM250K with multiples of RM 50 K thereafter. Provided there is no credit event that occurs, 100% of principal amount will be returned together with the interest amount at the final interest period. Guaranteed 5% p.a. Also, those who take up this investment scheme is entitled to 5.2% for FD for 3 months up to maximum of RM375K.
However returns of the product will be affected by the performance of the underlying asset .
Not insured by PIDM.

These two cannot be from same investment product...

100% principal amount returned..

5% guaranteed P.a.

The 5% might be just indicative profit..

Yup they are separate. The special fd rate will only be applicable if the customer takes up the investment product.

Oh like that.. it is common trick to entice people to invest by giving higher FD rate.

Well it depends on you if you want. But for me, I am not so interested in capital protected investment. Often (but not always), they end up getting lower than FD rate.

This post has been edited by gark: Jan 23 2017, 06:49 PM

Not really planning to go into it after thinking about it for a long time. Will just park in FD for now and some amount in different investment avenues.

if you place a big fd, they will offer it to you

How high is possible if one puts in 1M?

That is an interesting way of putting it !

I have invested in bond funds which claimed to give >5.5% yield and capital protected. At the end get something like 3.7% due to bla bla reasons. Also enticed with short term high interest FD.