GREAT2020 IS FULLY SUBSCRIBED AND WHAT YOU NEED TO KNOW IN THE YEAR OF GOOD-YIELD PRODUCTS!

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Dear readers, it was only recently that Great Eastern, a subsidiary of OCBC announced its GREAT2020 endowment plan which aims to pay out a guaranteed interest yield of 2.20% per annum for a holding period of three years. And not only are the interest yields very decent, the endowment plan would pay out the capital plus some premium at some not so good episodes.
GREAT2020 is now “FULLY SUBSCRIBED”.

While the full subscription may disappoint potential subscribers who have not subscribed, the good news is that from what I see, with interest rates poised to go north, there should be many more similar products on the card for interested investors.

Already, we have had the roll-out of Singapore Savings Bonds, Temasek Astria retail bonds, Nikko AM Investment-Grade Corporate Bond ETF and this latest Great Eastern’s GREAT2020.

As investors and subscribers enjoy the good spread of good and upcoming interest-rate products, I would advise investors to scrutinize the varying risk horizon in each of these products.

Except for the Singapore Savings Bonds which beats every other counterparts hands down in terms of holding period and risk threshold, all the other products require investors or subscribers to hold the products for some time.

While investors may be willing to hold these products to receive good yields, the pertinent question to ask is in the event of a stocks markets corrections occurring during the holding period of these products, would the investor be able to have any more liquidity to invest in the stocks markets by buying good stocks at market-corrected prices and achieve a more profitable margin gains? Join the emailing list to receive regular Financial and Singapore stocks newsletters too! Like" me on Singapore Stocks Investing Facebook page to receive all posts on your Facebook as well as read more articles. Follow me on Twitter too.

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