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Saturday, October 10, 2009

My opinion on PRUinvestor guaranteed plus product

I got to know of Prudential's new product PRUinvestor guaranteed plus only recently.

From agents, it is said to be 1) 100% Capital Guaranteed at maturity, 2) 2.5% p.a. interest guaranteed (Total 13.14%), 3) able to accept both cash and SRS, 4) and telling people application date for such "cool" product is ending soon but that's not really the case. I do not like the way products are marketed by agents.

1. 100% Capital Guaranteed at maturity

It is not really 100% guaranteed if it is guaranteed upon 36 months.

2. Sometimes marketed as 13.14%

This is a common tactic to "fool" aunties and uncles who are unaware of the compounding effect.

3. Able to accept SRS

At the rate of 2.5% p.a., I would say investing SRS monies in such product does not make sense to me since the new CPF interest rate structure is close to 2.5% p.a. too. At least CPF is truly 100% capital guaranteed.

4. Publish application date to be earlier than actual

This tactic attempts to make consumers make rash decisions. By the way, this product is available till 13 November 2009.


  1. this is not suitable for everyone, a small niche in fact.

    fits better with people who have put cash in a fixed deposit for years and are still going to ANYWAY despite all the options they may say they may explore.

    from what i heard, this is not a new product. was around earlier in the year but they had a quota and once reached, there's no more.

  2. yes, there is a the 2nd tranche we are holding. Once it reach 80 million target, we will hv to close it. It's suitable for clients with low risk profile,for capital preservation.

    The rate of return is 2.5% for 5 years. Wont wanna put it "interest gain is 13.14%".

    The last tranche was sold like really fast!

  3. The new tranche for 2010 is coming back on 29th Jan 2010.

    Same as before, it is going to be based on first come first serve basis.


Do provide your constructive comment. I appreciate that.

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