Wealth Creation

Unit trusts, also known as Collective Investment Schemes (CIS), are professionally managed investment funds that pool money from multiple investors to buy a diversified portfolio of assets such as stocks, bonds, and cash. These funds are managed by expert fund managers who aim to achieve specific investment objectives, such as growth, income, or capital preservation.

Unit trusts are an accessible and flexible way to invest, offering:

• Diversification: Reducing risk by spreading investments across various asset classes.

• Affordability: Allowing individuals to invest with relatively small amounts of money.

• Liquidity: Easy access to your investment when needed.

They are a popular choice for both beginner and experienced investors seeking to grow wealth over time while balancing risk and reward.

An endowment policy is a financial product designed for medium- to long-term savings, combining investment growth with life insurance benefits. It allows individuals to save a lump sum over a fixed period, typically 5 to 20 years, with the potential for tax-efficient growth.

Key features include:

• Tax Efficiency: Investment returns are taxed at a fixed rate within the policy, often lower than personal tax rates.

• Flexible Payout: Funds are accessible after the policy matures or under specific conditions.

• Wealth Building: Ideal for reaching savings goals like education, a home deposit, or retirement supplements.

Endowment policies are suitable for disciplined savers seeking a structured approach to building wealth while benefiting from potential tax savings.

A Retirement Annuity (RA) is a long-term investment vehicle designed to help individuals save for retirement in a tax-efficient manner. Contributions to an RA are tax-deductible (up to certain limits), and the investment grows tax-free until retirement.

Key benefits include:

• Tax Efficiency: Reduce taxable income while saving for the future.

• Flexible Contributions: Choose to invest monthly, annually, or as a lump sum.

• Regulation 28 Compliance: Ensures a diversified portfolio to protect long-term savings.

At retirement (age 55 or older), you can access up to one-third of your savings as a lump sum, with the remainder used to purchase an annuity for ongoing income. An RA is ideal for individuals who want to secure their financial future and supplement other retirement savings.

Structured investments are financial products that are typically created by combining traditional investment instruments, such as stocks or bonds, with derivatives (such as options or swaps) to create a customized investment strategy. These investments are designed to meet specific risk-return profiles, and often include features like principal protection, enhanced returns, or exposure to particular market movements or indices. Structured investments are commonly used to cater to investor needs for capital protection, income generation, or market participation, while also managing risks in line with the investor's objectives. However, they can be complex and may not be suitable for all investors.