From my dealing with my clients, MOST of them have a portion of their CPF money in Unit Trusts and Investment-Linked Insurance Products with the respective insurance companies. Me too.
In this financial crisis that started from end 2007 onwards, most people would have suffered a loss in the range of 20% - 60%. And they started to lose trust in such products. Pretty fair enough judgement at a glance.
Let's take a step back and review. Did your so-called 'financial consultant' explained to you the situation and do the necessary actions for you? I went through portfolios where the funds were never touched from the first day it was implemented until today. WHY? Because the consultant is no where to be found. Obviously the loss is unimaginable.
Unit Trust / ILPs are not instruments for you to make a quick buck within 2-3yrs, because you also have to factor in the peaks and troughs of the economy. The portfolio you have should be in line with your objectives, time horizon, risk profile, and expectation. It is through a combination of i) Time (probably >5yrs) and ii) Regularly monitoring that your portfolio is able to make reasonable returns. I put my actions where my mouth speaks. My portfolio is almost similar to what I buy for my clients.
Remember, an IFA works on the side of the client, and not for the company. U win = I win.
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