Invest round-up: 3 new offerings

The Sunday Times highlights a new initiative for Muslims, an endowment insurance plan and investment tools.

FINANCIAL SERVICES TO MUSLIMS BY AVALLIS FINANCIAL and FSAC

The Muslim community stands to benefit from an agreement between the Financial Shariah Advisory and Consultancy (FSAC) and financial advisory firm Avallis Financial to jointly provide financial planning and estate planning services to this community. The collaboration includes financial literacy courses.

FSAC is the consultancy arm of Singapore Islamic Scholars and Religious Teachers Association (Pergas). It aims to create awareness among the Malay/Muslim community of the importance of prudent money management and financial and estate planning from an Islamic perspective.

Mr Mohamed Salim, Avallis Financial chief executive, expects to reach out to 5,000 individuals in the first year of the collaboration.

"Being able to play a role to help improve financial literacy among Muslims will certainly help to uplift the financial well-being of the community," he said.

SINGLE PREMIUM SPECIAL 1.88%

BY OCBC BANK This product is a five-year single premium endowment plan that provides a guaranteed 1.88 per cent cash payout of your single premium at the end of each policy year. For example, based on a single premium of $55,000, your annual cash payout would be $1,034 for five years. When the plan matures, you would have received $60,170 in total, which includes your single premium.

Alternatively, you can opt to accumulate the cash payout at the non-guaranteed accumulation yearly interest rate of 3 per cent.

At the same time, you will be covered for death and total and permanent disability. You may use cash or your Supplementary Retirement Scheme savings for the premium payment.

Ms Tan Siew Lee, OCBC Bank's head of wealth management Singapore, said customers need not worry about losing their principal sum upon policy maturity, as it is capital-guaranteed.

You are encouraged to hold your insurance plan till maturity because the termination of your plan before the end of the third year of the policy tenure will result in you receiving less than the premium paid.

CITIGOLD DIVERSIFICATION INDEX (CDI) AND PORTFOLIO RISK EVALUATOR (PRE) TOOL

BY CITIBANK SINGAPORE The CDI determines the diversification level of a customer's existing investments and offers a holistic perspective to a customer's portfolio to identify potential risks and untapped opportunities. This helps to achieve potentially higher returns with lower risk by spreading across various investment products as opposed to holding a single investment over a medium to long time period.

The PRE tool checks the resilience and performance of a customer's portfolio by running it through a "stress test" of simulated significant market events. By highlighting the inherent risks in their portfolios, it helps customers better understand their risk exposure and make more informed financial decisions. It also takes into consideration their investment objectives and preferences.

A report with an illustration and comparison of the historical performance of both portfolios, from the perspectives of returns and risks, will be presented to the customer.

A version of this article appeared in the print edition of The Sunday Times on September 04, 2016, with the headline 'Invest round-up: 3 new offerings'. Print Edition | Subscribe