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Anonymous

28 Nov 2021

General Investing

About insurance ILP mutual funds

Do people tend to invest in the same funds over a long horizon in anticipation for higher fund value overtime or should there be active buying and selling of funds so that any gains can be captured and reinvest in other funds? Some funds doesn’t have much increase/ decrease over the period of 3 years that I’m invested in, i was wondering if there is anything that can be done to better maximize any potential capital gains?

Lastly, should the agent be assisting and providing sound advice on funds switching from time to time to buy and sell units in mutual funds to help clients maximize their gains?

Discussion (7)

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The Super Long Ark

29 Nov 2021

Full-Time Trader at Barista FIRE

It depends really. but generally people who buy ILPs dont monitor their fund performance and it is up to the agent to inform and advise their clients timely whether a reallocation is up for consideration since the client is feeding them with hefty commissions. its the least they ought to do, but most agents wont even know about the details and investment objectives of the funds they recommend. all in all, ILPs are a poor value proposition.

depending on the amount and payment period, terminating and cutting your losses and reallocating it to a robo/ETF might yield a better return and even recoup your losses.

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  • Improve returns, Dont buy ILP?
  • The 1st few years your $$$ are just paying agent commission.
  • You can buy unit trust by yourself, with no lock in period, no transaction cost and switching fee
  • Active buying/selling? No. Best way is DCA in any investment.
  • Should agent provide advice on fund? You need to understand how to evaluate an unit trust yourself, then u test the agent knowledge see if he is qualify to advise. Some agent or RM dont know anything, except selling.
  • If returns are your main focus, considered open a brokerage account and buy a board based ETF instead.

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