Tuesday, July 29, 2014

"MAS to help consumers access lower-cost investment products"

Just saw this CNA article on my newsfeed, titled as above.

Honestly, they are absolutely correct. With the crazy expensive fees that are being charged in the market place today, investors are forced to assume higher risks taking activities to offset these expensive charges.

Interestingly, their focus is on insurance. I am not surprised, but I always thought it was the status-quo to let insurance agents suck out all the extra money from people that don't want to bother with investments themselves. Sometimes the touting they give to promote certain products are way over emphasized to be a sure thing.

Don't get me wrong, I believe in having insurance. But I think when you mix investments with insurance, and then put in a middle man who's job it is to sell you the worst product on the market, it is a recipe for disaster.

I am extremely excited about the possibility to directly buy term and life insurance directly with an insurer. I only hope that the pricing and terms are very transparent and easily comparable from insurer to insurer. As of now, it is not.

Access to fixed income products is also something I am quite looking forward to. As previously mentioned, the retail fixed income scene in Singapore is pretty... lame.

Gotta say, I'm excited at the prospect of more investment vehicles for us retail investors to choose from. Having more choice in this case is definitely better I think.

My personal wish is for SGX to reduce lot sizes, ideally to 100. They can even do it by tiers, like how they have adjusted the minimum bid and ask prices.

I also wish that more ETFs that are core products become available to trade on the SGX in SGD, either through one of the current ETF providers creating a good product, or by allowing big players to come in and set up shop (ie Vangaurd).

What other things would you like to see in our local investment scene that would help benefit the average retail investor?

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