bank investment products

[Eau2011]

Poor thing,
Well, it is not only the Expats or you that fall into these traps or unscrupulousness people, locals got it bad as well, "Not everything, but most fitness clubs have a bad reputations and also be warned that beauty/health/weight loss spas operate with the same sh*tty attitude. They are crooks plain and simple. Take it to CASE." (Quoted SMS) and i must add bank investment products as well, it will take time to change, we are not world class yet.

So next time you want to sign a contract, share here and get good advise.
and in the mean time.... Caveat emptor - "Let the buyer beware".

Can you please tell me what you mean with bank investment products? We currently are gonna discuss with DBS for some investment products, an appointment next Tuesday. You scared me by telling me this.

Do you think that we have better chance in other European banks in Singapore? e.g. Deutsche Bank, ABN Armo Dutch bank?

We simply don't want to transfer money back to Europe to do investments there. In Germany we have to pay 25% flat rate withholding tax.

[JR8]

Why not open an offshore a/c? Something like HSBC (Jersey). You can trade stocks/etc with a linked HSBC trading a/c.

https://www.offshore.hsbc.com

This is something I need to look into too!

[Mad Scientist]

Bank investment products can range from insurance to dual currency (DCD) or managed funds, derivatives etc..
It all depends on how much $$$$ you have and willing to spend
The risk ranges from low to high. If your stomach can withstand the financial turbulence then yeah go for it.
For DCD and currency pairing, DBS has its own office that deals with currrency money market themselves unlike StanChart or UOB. Citibank has their own team too. DBS charges are much lower compare to Citibank. Spot pairing on currency will go to 7 major basket. Exotic ones has good return and also higher risk of loss. Third tier is not advisable to go if you are new.
Their spread can go as low as 2 pips
For managed funds, most overseas fund are issued overseas and DBS are one of the banks appointed to sell the funds. They take commission for every sale. If you recalled Lehman Brother debacle. DBS went for cover until Gahmen steps in as due care and diligence was not provided to clients
All funds have their own S & P rating. Past earning does not reflect future gains. All banks will say that their was exceptional growth in this or that funds. Look for the funds that invest in blue chips, government bonds or coupons, local bonds are more stable but the returns are not that good
Derivatives is another kettle of fish altogether. Too many things to disseminate.

Go with an open mind but do not sign on anything. Listen and compare.
If you need more info on what you are after. Post again

[Eau2011]

Why not open an offshore a/c? Something like HSBC (Jersey). You can trade stocks/etc with a linked HSBC trading a/c.

https://www.offshore.hsbc.com

This is something I need to look into too!

Thanks. I will look into in detail...

[Eau2011]

Bank investment products can range from insurance to dual currency (DCD) or managed funds, derivatives etc..
It all depends on how much $$$$ you have and willing to spend
The risk ranges from low to high. If your stomach can withstand the financial turbulence then yeah go for it.
For DCD and currency pairing, DBS has its own office that deals with currrency money market themselves unlike StanChart or UOB. Citibank has their own team too. DBS charges are much lower compare to Citibank. Spot pairing on currency will go to 7 major basket. Exotic ones has good return and also higher risk of loss. Third tier is not advisable to go if you are new.
Their spread can go as low as 2 pips
For managed funds, most overseas fund are issued overseas and DBS are one of the banks appointed to sell the funds. They take commission for every sale. If you recalled Lehman Brother debacle. DBS went for cover until Gahmen steps in as due care and diligence was not provided to clients
All funds have their own S & P rating. Past earning does not reflect future gains. All banks will say that their was exceptional growth in this or that funds. Look for the funds that invest in blue chips, government bonds or coupons, local bonds are more stable but the returns are not that good
Derivatives is another kettle of fish altogether. Too many things to disseminate.

Go with an open mind but do not sign on anything. Listen and compare.
If you need more info on what you are after. Post again

Thanks MS

We would not take the high risk, we have lost much during the financial crisis.

Yeah, they talked about dual currency which we never did it in Europe. I will have a good look at it.

DBS recommended Aberdeen pacific equity fund, first state global resources and first state regional china fund to me. Are you familiar with these?

[aster]

Why not open an offshore a/c? Something like HSBC (Jersey). You can trade stocks/etc with a linked HSBC trading a/c.

https://www.offshore.hsbc.com

This is something I need to look into too!

You could use a Singapore account to trade stocks and keep all the profits as there is no capital gains tax here on that.

[JR8]

Why not open an offshore a/c? Something like HSBC (Jersey). You can trade stocks/etc with a linked HSBC trading a/c.

https://www.offshore.hsbc.com

This is something I need to look into too!

You could use a Singapore account to trade stocks and keep all the profits as there is no capital gains tax here on that.

Neither is there in Jersey!

[aster]

But if you live here then what would be the benefit of doing it from some tiny island half-way around the world?

[Strong Eagle]

You have to read the fine print very carefully with Singapore banks. Offering 'certificates of deposit' which are actually a dual currency deal where you can lose principal if things go bad. They just neglect to mention.

[BillyB]

Bank investment products can range from insurance to dual currency (DCD) or managed funds, derivatives etc..
It all depends on how much $$$$ you have and willing to spend
The risk ranges from low to high. If your stomach can withstand the financial turbulence then yeah go for it.
For DCD and currency pairing, DBS has its own office that deals with currrency money market themselves unlike StanChart or UOB. Citibank has their own team too. DBS charges are much lower compare to Citibank. Spot pairing on currency will go to 7 major basket. Exotic ones has good return and also higher risk of loss. Third tier is not advisable to go if you are new.
Their spread can go as low as 2 pips
For managed funds, most overseas fund are issued overseas and DBS are one of the banks appointed to sell the funds. They take commission for every sale. If you recalled Lehman Brother debacle. DBS went for cover until Gahmen steps in as due care and diligence was not provided to clients
All funds have their own S & P rating. Past earning does not reflect future gains. All banks will say that their was exceptional growth in this or that funds. Look for the funds that invest in blue chips, government bonds or coupons, local bonds are more stable but the returns are not that good
Derivatives is another kettle of fish altogether. Too many things to disseminate.

Go with an open mind but do not sign on anything. Listen and compare.
If you need more info on what you are after. Post again

Thanks MS

We would not take the high risk, we have lost much during the financial crisis.

Yeah, they talked about dual currency which we never did it in Europe. I will have a good look at it.

DBS recommended Aberdeen pacific equity fund, first state global resources and first state regional china fund to me. Are you familiar with these?

As SE said, read the small print on anything first.

Aberdeen and First State are good investment managers, but so are plenty of others out there. Don't feel you are restricted because DBS recommends them - its likely they get good commission on these firms hence your choice is restricted somewhat. Do your research on them as all the performance figures are available on their websites. if you need some definitions of the terminology and abbreviations, use investopedia or google to check.

If you want something low risk look at structured products which can offer you up to 100% protection on your initial capital. Or look to invest in government bonds. There are a whole host of lower risk products out there depending on your preferences.

Take your time to research all your options and then make a decision. Don't feel pressured by your bank to invest straightaway.

[JR8]

A few comments:-

- I don't know precisely what a DCD is, but anything involving a currency play is highly risky for your average investor. I'd suggest it is speculating rather than investing.

- Remember there is a ratio between risk and reward. If the suggested reward looks high, you can be sure that the risk is too. Do not be blinded by promises or dreams of easy big returns.

- Make very sure you no the downsides of any products that you buy. The banker should ensure you are fully aware of what you are buying, but well, it is not always as rigorous as it ought to be.

p.s. I used to work in Private Client Banking for a number of years. One thing that was as predictable as night following day was that any time there was a market rout (and it used to happen about every 3 years, (1989, 92, 95, 98, 01 etc.)) was that clients who were happy buying exotic derivative backed stuff to chase high returns for years would get stuffed by the market, and then immediately a swathe of them would accuse the bank of not explaining the products were risky. Like clockwork every time [sigh!]. What was frustrating was despite having bullet-proof compliance in our operation, quite often these clients did get some pay-out.

[Mad Scientist]

Yeah, they talked about dual currency which we never did it in Europe. I will have a good look at it.

DBS recommended Aberdeen pacific equity fund, first state global resources and first state regional china fund to me. Are you familiar with these?

I will try to explain it in lay man term
DCD is basically you placed a bet or hedge on one currency against your current currency and hedge it for a week to three months to earn a fixed amount of interest calculate per annum multiply against the number of weeks you fixed the interest on. If it is not converted to the hedge currency you earn the interest .If your currency got converted you will have the hedge currency plus interest. YOU HAVE TO STATE AT WHAT EXCHANGE RATE YOU ARE PREPARED TO CHANGE INTO . THIS WILL DETERMINE THE interest rate earn. The closer it gets , the higher the return and the higher the risk of being converted. You can loose your principal if you are not careful in managing.
If you are not into currency take it slow. I am a currency player and have a number of instruments to monitor but this is a full time thing.

Aberdeen is OK as it is a managed fund. Look for Singapore managed fund as most fund has a requirement to buy into Government Bond/Depository. Make sure look for QLB and FLB banks. DBS is one of them.
Another instrument is Insurance Managed Fund. Prudential or AIA , AXA has these.It gives your life cover, managed fund and full protection on principal eg. is Prulink

[JR8]

Yeah, they talked about dual currency which we never did it in Europe. I will have a good look at it.

DBS recommended Aberdeen pacific equity fund, first state global resources and first state regional china fund to me. Are you familiar with these?

I will try to explain it in lay man term
DCD is basically you placed a bet or hedge on one currency against your current currency and hedge it for a week to three months to earn a fixed amount of interest calculate per annum multiply against the number of weeks you fixed the interest on. If it is not converted to the hedge currency you earn the interest .If your currency got converted you will have the hedge currency plus interest. YOU HAVE TO STATE AT WHAT EXCHANGE RATE YOU ARE PREPARED TO CHANGE INTO . THIS WILL DETERMINE THE interest rate earn. The closer it gets , the higher the return and the higher the risk of being converted. You can loose your principal if you are not careful in managing.
If you are not into currency take it slow. I am a currency player and have a number of instruments to monitor but this is a full time thing.

Aberdeen is OK as it is a managed fund. Look for Singapore managed fund as most fund has a requirement to buy into Government Bond/Depository. Make sure look for QLB and FLB banks. DBS is one of them.
Another instrument is Insurance Managed Fund. Prudential or AIA , AXA has these.It gives your life cover, managed fund and full protection on principal eg. is Prulink

With the greatest of respect MS, I really don't think these DCD's should be suggested to the 'average man on the street'. They sound like gambling, and they sound very very high risk.

[Mad Scientist]

They sound like gambling, and they sound very very high risk.

Yeah , I agree with you wholeheartedly. I know DBS will coerce client to joint this instrument. At least she gets a heads up from one of us.
At the end of the day , it is her call

[JR8]

'Coercion to buy'... that sends shivers down my spine!