I attended a talk on the CIMB Singapore MaxInvestSave structure deposit product. It seems to have some interesting features which looks good.
Just like unit trust, you will exchange your money for number of units. Initially it will be priced at S$1.00. This value is calculated based on a counter known as EverGreen which will be published on the newspapers weekly.
Firstly, you need S$25K SGD and lock in the money for 15 or 25 yrs. To start off the investment, the bank will give you free units (early bird) of 25% for 25 yrs. So your initial investment becomes S$31250 if you hold it until the end of 25 yrs.
The good thing abot this investment is that they have a RIV value, that is if you invest today at S$1.00, and it starts to drop to S$0.80 in a month or few years time, you are assured the highest peak during the whole tenure of 25 yrs which ever is higher. e.g. $1.00 -> $0.80 -> $1.07, you will be assured $1.07 at the end of the 15 yrs if you don't take it out until maturity. Of course, you can buy more units at S$0.80 or withdraw everything at $1.07
If say you sell off all units at $1.07 before maturity, you will get $1.07 x number of units less 5% sales charge (of your profits, not invested amt). This is better than buying unit trusts as 5% is charged on your investment amount (not on profits).
Likewise, if you sell everything at S$0.80, you don't pay the 5% since you lose money from the plan.
One thing mentioned is that since you don't hold it till maturity, the bank will take back the bonus units (prorated). Say if you sell 50% of the units before maturity, your units will be reduced and your bonus units will be 50% less.
So what do you think about this product?
comments.
Description
Get the best of both worlds with Max InvestSave Structured Deposit. Unlike traditional investments, Max InvestSave guarantees the maximum returns on your investment by ensuring that you get the highest price attained during your product lifespan when you hold it to maturity. With CIMB Max InvestSave, you can maximise your long-term savings.
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Max InvestSave offers:
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Maximum Lock-in Price on your investment with the security of savings, to secure the highest returns for you at the end of the product tenure.
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</TD><TD>
Maximum Flexibility to deposit or withdraw any amount of the investment at market price without penalty.
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Maximum Stability and Diversity with performance linked to a well diversified and wide range of asset classes and economic regions, reducing excessive risk exposure.
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</TD><TD>
Maximum Transparency with no up-front or hidden fees other than a 5% performance profit fee based solely on your profit.
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Maximum Savings through the flexibility of a regular investment savings plan.
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Maximum Bonus Units up to 25% on the total amount invested during our Early Bird Bonus Promotion period.
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Maximum Profit for your long term investment period.
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Easy To Start:</TD></TR><TR><TD vAlign=top width="2%">
</TD><TD width="98%">Take your pick from either tenures of 15 or 25 years.
</TD></TR><TR><TD vAlign=top width="2%">
</TD><TD width="98%">To start off, only a minimum contribution of SGD5,000 with subsequent monthly investments of SGD100 and above. Also available in USD with the same conditions.
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Returns Simulation
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Let's assume you:</TD></TR><TR><TD vAlign=top width="2%">
</TD><TD width="98%">Deposit an initial investment of SGD 20,000 or USD 20,000.
</TD></TR><TR><TD vAlign=top width="2%">
</TD><TD width="98%">No weekly investment contributions.
</TD></TR><TR><TD vAlign=top width="2%">
</TD><TD width="98%">No early withdrawal was performed during the tenure of the investment.
</TD></TR><TR><TD vAlign=top width="2%">
</TD><TD width="98%">Entitled for Bonus Promotion (15% for 15 years, 25% for 25 years).
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Here’s what you could enjoy with Max InvestSave:
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Tenure: 15 years = Total Investment Contribution SGD20,000 + Bonus Units Amont of SGD3,000</TD></TR><TR bgColor=#eeeeee><TD width="14%">
Scenario
</TD><TD width="27%">
Total Value at Maturity
</TD><TD width="12%">
Profit
</TD><TD width="12%">
% of Return
</TD><TD width="12%">
IRR
</TD><TD width="23%">
Average Maturity RIV
</TD></TR><TR bgColor=#eeeeee><TD>
Worst Case
</TD><TD>
23,000.00
</TD><TD>
3,000.00
</TD><TD>
15.00%
</TD><TD>
0.93%
</TD><TD>
1.0000
</TD></TR><TR bgColor=#eeeeee><TD>
Bearish
</TD><TD>
33,458.93
</TD><TD>
13,458.93
</TD><TD>
67.29%
</TD><TD>
3.43%
</TD><TD>
1.4787
</TD></TR><TR bgColor=#eeeeee><TD>
Base Case
</TD><TD>
56,480.93
</TD><TD>
36,480.29
</TD><TD>
182.40%
</TD><TD>
6.93%
</TD><TD>
2.5323
</TD></TR><TR bgColor=#eeeeee><TD>
Bullish
</TD><TD>
114,563.32
</TD><TD>
94,563.32
</TD><TD>
472.82%
</TD><TD>
11.65%
</TD><TD>
5.1905
</TD></TR></TBODY></TABLE>
<TABLE class=Content border=0 cellSpacing=1 cellPadding=3 width="100%"><TBODY><TR><TD bgColor=#cc0000 height=30 colSpan=6>
Tenure: 25 Years = Total Investment Contribution SGD20,000 + Bonus Units Amount of SGD5,000</TD></TR><TR bgColor=#eeeeee><TD width="14%">
Scenario
</TD><TD width="27%">
Total Value at Maturity
</TD><TD width="12%">
Profit
</TD><TD width="12%">
% of Return
</TD><TD width="12%">
IRR
</TD><TD width="23%">
Average Maturity RIV
</TD></TR><TR bgColor=#eeeeee><TD>
Worst Case
</TD><TD>
25,000.00
</TD><TD>
5,000.00
</TD><TD>
25.00%
</TD><TD>
0.89%
</TD><TD>
1.0000
</TD></TR><TR bgColor=#eeeeee><TD>
Bearish
</TD><TD>
59,148.53
</TD><TD>
39,148.53
</TD><TD>
195.74%
</TD><TD>
4.34%
</TD><TD>
2.4378
</TD></TR><TR bgColor=#eeeeee><TD>
Base Case
</TD><TD>
225,528.98
</TD><TD>
205,528.98
</TD><TD>
1,027.64%
</TD><TD>
9.70%
</TD><TD>
9.4433
</TD></TR><TR bgColor=#eeeeee><TD>
Bullish
</TD><TD>
921,914.86
</TD><TD>
901,914.86
</TD><TD>
4,509.57%
</TD><TD>
15.34%
</TD><TD>
38.7648
</TD></TR></TBODY></TABLE>
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Tenure: 15 Years = Total Investment Contribution USD20,000 + Bonus Units Amount of USD3,000</TD></TR><TR bgColor=#eeeeee><TD width="14%">
Scenario
</TD><TD width="27%">
Total Value at Maturity
</TD><TD width="12%">
Profit
</TD><TD width="12%">
% of Return
</TD><TD width="12%">
IRR
</TD><TD width="23%">
Average Maturity RIV
</TD></TR><TR bgColor=#eeeeee><TD>
Worst Case
</TD><TD>
230,000.00
</TD><TD>
3,000.00
</TD><TD>
15.00%
</TD><TD>
0.93%
</TD><TD>
1.0000
</TD></TR><TR bgColor=#eeeeee><TD>
Bearish
</TD><TD>
41,148.72
</TD><TD>
21,148.72
</TD><TD>
105.74%
</TD><TD>
4.81%
</TD><TD>
1.8306
</TD></TR><TR bgColor=#eeeeee><TD>
Base Case
</TD><TD>
83,333.415
</TD><TD>
63,333.41
</TD><TD>
316.67%
</TD><TD>
9.526%
</TD><TD>
3.7613
</TD></TR><TR bgColor=#eeeeee><TD>
Bullish
</TD><TD>
181,722.51
</TD><TD>
161,722.51
</TD><TD>
808.61%
</TD><TD>
14.74%
</TD><TD>
8.2642
</TD></TR></TBODY></TABLE>
<TABLE class=Content border=0 cellSpacing=1 cellPadding=3 width="100%"><TBODY><TR><TD bgColor=#cc0000 height=30 colSpan=6>
Tenure: 25 Years = Total Investment Contribution USD20,000 + Bonus Units Amount of USD5,000</TD></TR><TR bgColor=#eeeeee><TD width="14%">
Scenario
</TD><TD width="27%">
Total Value at Maturity
</TD><TD width="12%">
Profit
</TD><TD width="12%">
% of Return
</TD><TD width="12%">
IRR
</TD><TD width="23%">
Average Maturity RIV
</TD></TR><TR bgColor=#eeeeee><TD>
Worst Case
</TD><TD>
25,000.00
</TD><TD>
5,000.00
</TD><TD>
25.00%
</TD><TD>
0.890%
</TD><TD>
1.0000
</TD></TR><TR bgColor=#eeeeee><TD>
Bearish
</TD><TD>
105,724.02
</TD><TD>
85,724.02
</TD><TD>
428.62%
</TD><TD>
6.66%
</TD><TD>
4.3989
</TD></TR><TR bgColor=#eeeeee><TD>
Base Case
</TD><TD>
529,508.52
</TD><TD>
509,508.52
</TD><TD>
2,547.54%
</TD><TD>
13.12%
</TD><TD>
22.2425
</TD></TR><TR bgColor=#eeeeee><TD>
Bullish
</TD><TD>
2,496,447.54
</TD><TD>
2,476,447.54
</TD><TD>
12,382.24%
</TD><TD>
19.34%
</TD><TD>
105.0609
</TD></TR></TBODY></TABLE>
Investors are advised that the simulation results are used for illustration purposes only based on hypothetical parameters and are not meant to be a guarantee, representation or an indication of future performance. Further information can be obtained from your sales representative upon request.
Note: The simulated returns are net of all fees (Profit fee and Index Management fee).
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</TD><TD> </TD></TR><TR><TD></TD><TD>Product Brochure</TD><TD align=right>
</TD><TD> </TD></TR><TR><TD></TD><TD>CIMB Evergreen Factsheet</TD><TD align=right>
</TD><TD> </TD></TR></TBODY></TABLE>
CIMB Max InvestSave is it a good investment ?
