What are the Pure ILPs with best returns in the market? Do you think I should go for them? Are there other better alternatives? What are your thoughts on FSMOne RSS and StashAway DCA compared to ILPs? - Seedly
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Anonymous

Asked on 20 Jun 2020

What are the Pure ILPs with best returns in the market? Do you think I should go for them? Are there other better alternatives? What are your thoughts on FSMOne RSS and StashAway DCA compared to ILPs?

I am a fresh graduate. I have no investment experience but I have been reading up on them quite a bit. As I have no investment experience, I am considering Pure ILPs since I do not have to manage them actively. Is there any platform where I can do it myself to lower the fees yet still keeping it mostly passively managed? Also, what do you guys think about FSMOne RSS and StashAway compared to Pure ILPs?

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YT
YT
Level 9. God of Wisdom
Answered on 20 Jun 2020

Firstly, you need to know what are ILPs. ILP stand for Investment-Linked Policy which provides both insurance and wealth accumulation components. Knowing this, it is not right to directly compare ILPs to Robos or RSPs which are solely meant for investments only.

Next, do not mix insurance and investments together due to higher costs and lower return as compared to getting them separately. You should find an advisor you trust to get your insurance plans based on your needs.

Lastly, I think you should definitely read up more about investing. You should know what are the various options available, how you can profit from the different instruments, and the risks involved.

Before you start investing, do look at Seedly's checklist first: https://blog.seedly.sg/working-adults-begin-investing-saving/

Next, you can compare the strategies by the different blogs on how to invest your money:

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Question Poster

20 Jun 2020

Actually, I am referring specifically to AIA Wealth Pro Advantage. If I interpreted the policy correctly, it is a 50% endowment + 50% wealth ILP with no insurance component involved. As such, I am comparing this investment to other investments.
YT
YT

21 Jun 2020

Yes you are right that it is half endowment and half wealth ILP. As mentioned earlier, I would not buy investment plans by insurance companies. The more middle-man you have in the transactions, the cost will add up. This investment has a hefty 1.3% annual fund management fee, more than double of some robos or RSS. Compare this to say Kristal.Ai which has no fees for the first USD$50,000 and you're losing out every year even if both invests in the same exact funds.