
We all know that we need to invest. For some of us, the time, knowledge, and the stress of watching the markets is nothing compared to the profit that may turn in, but for others, there is no time, too much to learn, and it’s too stressful to handle on our own.
Who wouldn’t wish that investments were fun, hassle-free, and yet a profitable experience?
With SingCapital, we can help. We take on the time, and feed you the knowledge. And the stress? Well, the stress will be spread over a team of Consultants who are here to help you make the right decision in any situation, so it’ll never be just on you alone.
Whether you need time, knowledge, or just another sounding board to work with, SingCapital Consultants are here for you.
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COLLECTIVE INVESTMENT SCHEMES
If you invest in a unit trust or fund, your money is pooled with money from other investors and invested in a portfolio of assets according to the fund’s stated investment objective and investment approach. A unit trust is a fund which adopts a trust structure; not all funds use a trust structure.
The main difference between a Unit Trust and an ILP is that the former does not have any insurance element. Unit Trusts are 100% investment products.
Depending on your goals and current situation, one investor’s portfolio will not be the same as another’s. If you prefer some coverage and slightly lower risk, you may consider investment-linked policies.
INVESTMENT-LINKED POLICIES
According to MoneySENSE, Investment-linked insurance policies (ILPs) have both life insurance and investment components. Premiums are used to pay for units in investment–linked fund(s) of the policyholder’s choice. Some of the units purchased are then sold to pay for insurance and other charges, while the rest remain invested.
ILPs provide insurance protection in the event of death or total and permanent disability (TPD), if included. Depending on the policy, the death or TPD benefit may comprise the higher of the sum assured or value of ILP units or some combination of the sum assured and the value of ILP units. How much is paid depends on the value of the units of the sub-fund at the time.
Unlike whole life or endowment participating policies, ILPs usually do not have guaranteed cash values. The value of the ILP depends on the price of the units in the sub-fund, which in turn depends on the sub-fund’s performance.
Premiums of an ILP increases year by year as the insured gets older, but units may be sold to pay for the insurance charges, leaving fewer units invested to accumulate cash values under the policy.
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