If history teaches us lessons, one of the most important one has to be "Don't put all your eggs in one basket". We believe that no one single investment can outperform the others at all times and it can turn really bad sometimes. Therefore, unless one knows exactly what risks are involved and is willing to accept it, Arcadia's recommendation is to take a portfolio investment approach. In fact, research shows that the single most important contributor to return is portfolio asset allocation.

Unit linked product offer a convenient platform for portfolio management. Technically, it is an insurance policy. The term "Unit Linked" refers to the fact that the value of the insurance policy is linked to some unitized investments, mainly mutual funds and stocks. Some unit-linked products have associated insurance cost and benefit and some do not incur insurance cost and can be treated as an investment account.

Typically, through a unit linked product, investor can invest in a wide range of funds, often the best breed in each sector from different fund houses, and enjoy deep discounts as the insurance companies can get an institutional discount. The investor can also enjoy flexibilities and conveniences like removal of minimum holding restrictions, all fund dealings being handled by insurance company and features like policy loan arrangement. The investment can also be structured in lump sum or regular contribution form. All these enable an investor to easily implement his portfolio asset allocation strategy and also make the maintenance job of rebalancing much simpler.

Although these products are becoming very popular in the market, details of these products and how it should fit into one's overall financial planning are not trivial. Being a broker of insurance products, Arcadia have access to majority of unit linked products available in the Hong Kong market and is able to choose the product that is suites client's objectives best.



To find out how to manage your portfolio easily, please contact your Arcadia consultant or our Customer Services.



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