Does investing into capital protected/guaranteed fund make sense? Please look at the market now. Market are relatively cheap at this moment... there will be more upside then downside. The Chinese equity was trading at more than 40X P/E early this year while now is only trading at merely 20X P/E.
Anyway ! There is no clear direction if the market will continue to slump. Personally I prefer to invest into only high risk market such as China and India by using capital protected/guaranteed fund.
Eventually still depends if the investors view the market as relatively attractive/cheap or still appear to be expensive to the investors. If you think market is low now, then this product make no sense to you but if you think market is attractive/cheap, it make more sense to invest directly into the market (not a protected or guaranteed portfolio). Happy investing!
Monday, May 26, 2008
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