There will be 3 part to this post because I need to drive the whole day.
So let us start with Part 1.
What sparked this Post is an Enquiry on OCBC Blue Chip Investment Plan (BCIP).
Below is his reply when I ask what he knows about BCIP before I Forensic Analysis for him.
"oh right... so basically its just a saving plan that provides a higher % interest? can i put it in this way?"
From his answer, I know his main objective is to have a capital protected saving plan that give good return of interest rate.
In this case, this product might not be suitable for him because
1. it is an investment plan that is not capital protected but it does comes with a better dividend returns compare to INTEREST RATE from bank.
2. There is expenses incurred for every transaction that normal saving deposit does not incurred. (unless you over shot the 300pcs a day from counter deposit)
3. There is a risk that on the day you need to Sell the Shares you might be at a losing end.
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This product is suitable for people who
1. Know ALL the expenses for buying and selling shares and are willing to accept the expenses
2. wants to Diversify thier extra funds like SRS or Spare Cash for a better ROI
3. Have Limited Capital but wants to start young and accumulate his position with $100 or more monthly and at the same time get better ROI.
4. Believe that the Dollar Averaging is moving towards their advantage in the future.
5. Knows the downside of this investment and knows when not to sell their shares when the market is dim.
In Part 2, I will talk about POSB Invest Saver vs OCBC BCIP and which one is recommended for his New Objective.
Driving off now!
Another Good Deed Done!
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