Anonymous wrote:Thanks all for the valuable information. Yes, I am a novice and have never invested, won't even give a 2nd thought to investing my money into their investment plans now.
aloof, whats ELN..? Can you just briefly describe?
basically, ELN in singapore are meant more for the "accredited investor"
1) annual income >S$300,000 or
2) personal assets >S$2,000,000
but normally, they will need a minimum investable amount, like a minimum of S$50,000.
Basically in ELN, the investor will be able to pick some stocks at a certain price (a strike price, which is a certain % of the price of the stocks, normally abt 95%) and there will be an expiry date for the stocks, ie 30days, 60 days or 90 days.
If on the expiry date, the value of the stocks is higher than the strike price, the investor will earn the profits. If it is lower than the strike price, the investor will be liable to keep the stocks.
It is considered a fairly low risks investment as even if the price falls below the strike price on expiry date, the investor will keep the stocks. However most of the stocks ae considered "blue chips" stocks and will tend to rise in value sooner or later.
But for a novice, I woould advise to start off with unit trust or mutual funds investing for a start. Let me know if you are interested to know more.