Is AXA ILP Pulsar good? SOS. Agent told my friend 10-15%pa.?

Hi anon,

Unpopular opinion alert: don't make a blanket conclusion that all ILPs are trash without first knowing fully the pros and cons of that specific ILP you're looking at.

Ask your friend to take advantage of the free-look period to understand the policy fully. As someone who invests in an ILP myself, I am cognisant of all the stigma surrounding it, the high fees, the lock-in period, low liquidity, etc., and I've also been through the same "should I keep, should I throw" struggle.

The three underlying sub-funds that your friend has purchased are actually good funds. US and China markets are on a bull run. JPM Greater China Fund performed very well in 2020 despite the market crash - showing resilience amidst adverse market conditions. Franklin Tech Fund has a solid track record too (which is an important metric in the asset management industry). And Blackrock is one of the world's leading fund houses PLUS gold is not a bad commodity to be holding on to.

Between me and you, I'm also holding units of Franklin Tech A and JPM Greater China, and my returns? Much better than 10-15% so far. Annualised. After fees.

But just because the underlying funds are good, doesn't mean the product is good. That's why your friend must know the product well. And also, consider if she can buy these funds separately outside of Pulsar? And if she buys them outside of Pulsar, how much fees will she be paying anyway? All important considerations.

Get a second opinion. Or third opinion as well. It's like you see doctor, you don't believe him, you go elsewhere get second opinion right? So you see the agent, you believe or don't believe, also just get second opinion - it's free advice anyway.

If you are really concerned about your friend, you can do all this research on her behalf. But ultimately, it's not you who needs the conviction, but your friend. It's her money, not yours (unless in a sudden plot twist, you guys are getting married or something). If the product turns out bad, she's the one who lugi. She will learn too. Sometimes we need hard lessons to learn. Losses aren't always bad either. Perspective matters.

So I admire and respect your concern for your friend, but ultimately she has to be convinced that she needs to do some homework to really understand the product. Who knows? Maybe she has already done the homework and decided for herself that it's good. Maybe you guys should have a good chat about it. Hope this was helpful in the slightest.​​​

Hi Anonymous,

Do note that the returns of, quote, "10-15%pa", is projected and not guaranteed, and it depends on the future performance of the underlying funds.

There is a free-look period of 14 days from policy inception date but it is best to check with your financial advisor on this.

Disclaimer: PolicyWoke is a 2nd-hand endowment policies broker