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.
|