"No" risk investment / saving
Need advice again. This time i give more exact requirements:
- is my friend, want to have saving plan, very afraid of any risky investment, WON'T consider equity, i think index fund also impossible, no security account
- want monthly saving with flexibility, can redeem anytime. i think HSBC plan meets the requirement, but need to open security account, will introduce extra cost? any alternatives?
- i suggest bond fund, lowest risk fund by my understanding, agree?
- if bond fund, any recommendation? global / europe / asia / hk? any other consideration?
- i remember there are some guaranteed return funds of 3-5 yrs period, offered from some banks, but not monthly investment... any "guaranteed return monthly investment" u know?
- finally... all above things are not my recommendation, but i am afraid i can't persuade my friend to accept risk... will it be more simple if i just suggest my friend to save money and earn interest by BOC 0存整付?
2 則留言:
my thoughts:
1. you put your money in a bank you will still be subject to the credit risk of the bank => if the bank bankrupts you lose you money. if you put your money under your pillow, you will still be subject to the inflation risk (and the risk of being stolen) => the purchasing power of the same amount of money will keep depreciating. so, in any case you face the risk, and it's the type of risk that your friend should choose to take.
2. i still don't like the idea of a fund. Why don't buy a bond instead of a bond fund, in order to save the subscription fee and management fee charged by the fund manager?
3. HKMA will offer some bonds for public subscription. you can check its website for info. they will advertise in newspaper as well. the return is >3% per year I think.
4. if i remember it correctly, you can buy some bonds via your account with hsbc. whether it's a security account really doesn't matter much i think.. there may be some extra cost for having an account but it should be insignificant compared to your portfolio.
5. you should distinguish between guaranteed prinicpal and guaranteed return. some products these days offer the feature of "principal protected" -> on expiry date you should be able to get back at least the money you invest. for guaranteed return, i think it's just like a bond - a straight bond will give you a pre-determined coupon every six-month or so...
6. high risk high return - at the end of the day if your friend can't accept any risk at all, then 0存整付 may be a good choice.
7. how old is your friend? if he/she is in his/her early 30s or late 20s then I believe he/she should prepare to accept some more risks - so that he/she will have a higher chance to have a better living standard when he/she gets old....
happy to discuss.
If the period is long enough, say 10 years, how about insurance?
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