I am currently investing in AutoWealth. Should I diversify my portfolio by investing in ILP such as AXA Wealth Treasures to leverage on Accredited Investors Funds?

Based on the information that you have provided, the short answer is no.

• You can do better elsewhere. In this day and age, no one should be paying more than 1.5% in the management fee. And your objective of diversification, if ILP is already investing in countries that your Autowealth's portfolio is already investing in, that most probably you will not get any further benefits of diversification.

• The probability of you getting better returns from ILP is also very slim. Most ILP invests in funds that are actively managed. And if there is anything that active funds can deliver with a high certainly are their underperformance on average on the whole and still charging investors 1%++.

Diversifying your portfolio is definitely an important step in building your investment portfolio over time. However, it will be valued to assess your current portfolio and see how we can improve it further.

Thereafter, understand yourself and your goals - e.g. why are you choosing ILP over other tools available in the market?

For AXA Wealth Treasures, one of the perk is the start-up bonus where you can get 1 year premium if you choose the 30-year pay option with minimum invested amount of $12k annually for 30 years. For the loyalty bonus, it is pretty minimal.

For the fees, in addition to the management fee that you have mentioned, there is also 30 years account maintenance fee, 30 years investment management fee, and some other fees. One of the important fees to note is partial withdrawal fee - imposed on each withdrawal during the first 25 years! In effect, that is a quarter of my life that I cannot touch my money, else pay some fee.

If you are looking at investment-linked policy for investment, then you may wish to consider AIA Pro Achiever. There is no policy fee, no sales charge, and no bid-offer spread. Instead, there is only a monthly supplementary charge of 2.5%/12 monthly for the first 12 years and no charges thereafter.

For partial withdrawl, there is no charges imposed after the end of the 12th year. Additionally, you will receive an additional 5% allocation for every premium thereafter.

For the investment, you can pick the funds yourself or to select the portfolio by our investment specialist, Mercer - one of the largest global provider for investment consulting services with more than US$11.7 trillion global designated assets under advisement for a broad range of institutional clients worldwide. More info: https://www.facebook.com/workwithpzl/posts/2951...

In any case, take your time to read the terms properly, especially if you choose an investment-linked policy. While some charges are inevitable, paying more than you should be is defintiely a no-go.

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