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Thread: Investment or fixed deposit?

  1. #21

    Default Re: Investment or fixed deposit?

    Quote Originally Posted by foreverlovex View Post
    For those who have limited education or are risk adverse retirees, there are a higher chance of misrepresentation.

    For those who are educated and are profiled of a higher risk appetite, things become more murky. They may be informed about the risk underlying the assets they are purchasing and they go in with eyes opened. But at that point of time who would think that Lehman or any top 5 investment banks would go burst?

    Another problem may be the complexity of such structured products. Blame it on the financial engineers who designed them.

    Another problem is also the misalignment of incentive for the financial planners/relationship managers selling such products.
    The terms and conditions are lengthy and wordy. To explain all you need patience, time and those who understand the product thoroughly. I doube the RO knows the prodcut well and understand the risk involved. Or maybe they are only interested in getting the commission only.
    One of the ways is to make the customer acknowledges on the bold line on the risk involved. Repeat the note to the customer and acknowledge again. Of course at the end of the day no one will be able to sell the product!

  2. #22

    Default Re: Investment or fixed deposit?

    Quote Originally Posted by Yappy View Post
    The terms and conditions are lengthy and wordy. To explain all you need patience, time and those who understand the product thoroughly. I doube the RO knows the prodcut well and understand the risk involved. Or maybe they are only interested in getting the commission only.
    One of the ways is to make the customer acknowledges on the bold line on the risk involved. Repeat the note to the customer and acknowledge again. Of course at the end of the day no one will be able to sell the product!
    I'm very interested in investment and how to make my money work harder.
    Any books or sites that you can recommend for starters and enthusiast?
    a700 + F56AM + 50mm/f1.7 + 17-50mm/f2.8 + 90mm/f2.8 + 75-300mm
    flickr!

  3. #23

    Default Re: Investment or fixed deposit?

    Quote Originally Posted by Yappy View Post
    Last Saturday, my parents went to a local bank to withdraw some money. Again they were pull aside and were almost coaxed into putting money into 'Fixed' deposit when it is actually an investment. Fortunately my father decided to give me a call and I told them to bring all the document back and not to sign any paper.

    Have they not learnt a lesson? Why are they still playing the old trick? Those bank customer relationship officers are only interested in getting the commission and they do not bother about the consequences.... can something be done?

    What do you want to be done? There's no "trick". It's targeted-marketing at work.

    People who sign but don't know what they are signing-- they bear no responsibility at all?

  4. #24

    Default Re: Investment or fixed deposit?

    Quote Originally Posted by waileong View Post
    What do you want to be done? There's no "trick". It's targeted-marketing at work.

    People who sign but don't know what they are signing-- they bear no responsibility at all?
    My concern is they are not telling the true or they do not know their product well. There are diiferents between investment and FD... or am I wrong?

    If they had told me it was an investment, I would not had gone near them... and there are many of them out there... just walk into the UOB bank on Saturday monrning at Jurong Point and you know what I am talking about!!!!

  5. #25
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    Default Re: Investment or fixed deposit?

    Put it this way, education is always important and self-control.

    uncles & aunties have gone through half of their life, seeing the hardship and reality. Why fall in the trap of quick moeny reward? isn't it greed or the temptation of easy money feeling?

    we, the educated people, read, understand the risk, but just could not accept the fact that 0.01% of risk / failure does exist. And the risk never specified whether it's losing partial or total of your capital.

    Play the game, bite the reality. That's the sad thing.

  6. #26

    Default Re: Investment or fixed deposit?

    Quote Originally Posted by shorty View Post
    Put it this way, education is always important and self-control.

    uncles & aunties have gone through half of their life, seeing the hardship and reality. Why fall in the trap of quick moeny reward? isn't it greed or the temptation of easy money feeling?

    we, the educated people, read, understand the risk, but just could not accept the fact that 0.01% of risk / failure does exist. And the risk never specified whether it's losing partial or total of your capital.

    Play the game, bite the reality. That's the sad thing.
    I agreed with you whole heartedly. For those not so savy, you listen to advice by a bank. If the bank tells you that it is high risk, nobody will go near them....

    MM Lee had said. High return.. high risk.

    So the choice is yours!

    Many investment companies are also burnt!

  7. #27

    Default Re: Investment or fixed deposit?

    Quote Originally Posted by Lubber Duckie View Post
    I'm very interested in investment and how to make my money work harder.
    Any books or sites that you can recommend for starters and enthusiast?
    Nobody can tell you the answer.

    I once asked the CEO of a gold refining company on the investment in the bullion market. His reply was "If I know, I would not be sitting here!"

  8. #28

    Default Re: Investment or fixed deposit?

    Quote Originally Posted by Yappy View Post
    Nobody can tell you the answer.

    I once asked the CEO of a gold refining company on the investment in the bullion market. His reply was "If I know, I would not be sitting here!"
    Buy from him!! Most honest answer!!
    Idea got, execution not!
    APAD|Travelogue

  9. #29

    Default Re: Investment or fixed deposit?

    Quote Originally Posted by pisduck View Post
    actually,

    fixed deposits also got risk what.

    I think the current mini bonds issue is really blown out of proportion. I mean if I put my money in DBS fixed deposit and DBS goes belly up like Lehman, can I demand all my money back???

    Lehman is a BIG bank in America and the risk of them collapsing is really low 2 years back.
    The problem is the minibonds are not bonds. Hehe ... probably that's why they're mini. The other bit is that the Relationship managers basically push the product with no regard of the investor's current portfolio - i.e. you get the all your life savings dumped into minibonds type of situation.

    The sub prime mortgage crisis has been brewing for years, but would an investor realise the exposure to it if they were to invest in any of these mortgage backed securities? No. Nobody wants to explain the risk to the end customer until it all blows up. From the parent banks, SEC, mas, local banks, RMs -- noone. It's a hot potato and the last one that holds it says ouch.

  10. #30
    abbynelson28
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    Default Re: Investment or fixed deposit?

    I think there should be strict disclosure policies with the banks on various investment options regarding the nature of investments, time period of investment, expected returns and risk attached with the products which would reduce mis-selling

    ----------------------------------
    Abby Nelson
    internet merchant account
    Last edited by abbynelson28; 7th December 2008 at 02:58 AM.

  11. #31

    Default Re: Investment or fixed deposit?

    Quote Originally Posted by abbynelson28 View Post
    I think there should be strict disclosure policies with the banks on various investment options regarding the nature of investments, time period of investment, expected returns and risk attached with the products which would reduce mis-selling
    No venture no gain.

    U take the risk when you ask for high return.

  12. #32

    Default Re: Investment or fixed deposit?

    Quote Originally Posted by Lubber Duckie View Post
    I'm very interested in investment and how to make my money work harder.
    Any books or sites that you can recommend for starters and enthusiast?
    No need to read book just ask the RM from the banks & you will get the best deal

  13. #33

    Default Re: Investment or fixed deposit?

    If you buy DBS shares at the current low levels, you are likely to make an equivalent or at best double the profit (not capital) in a couple of years when the economy recovers. If you save your money in the bank today, you won't earn much. Markets have priced in a recession, might still be choppy, but it's a good time to put to good use the money that can be set aside for investment. There is always the risk that some unforseen circumstances may occur, but that is the risk to take for any investment.

  14. #34

    Default Re: Investment or fixed deposit?

    Quote Originally Posted by shojibake View Post
    The problem is the minibonds are not bonds. Hehe ... probably that's why they're mini. The other bit is that the Relationship managers basically push the product with no regard of the investor's current portfolio - i.e. you get the all your life savings dumped into minibonds type of situation.

    The sub prime mortgage crisis has been brewing for years, but would an investor realise the exposure to it if they were to invest in any of these mortgage backed securities? No. Nobody wants to explain the risk to the end customer until it all blows up. From the parent banks, SEC, mas, local banks, RMs -- noone. It's a hot potato and the last one that holds it says ouch.
    Resulting in no sale for the RM and no commission. I think those recently retrenched are from this sector of the company. Visit any bank now, and you will see them less active or even closed as the office lights were switched off.
    But they will return with a different product!

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