I went to OCBC during the week and they tried to sell me Unit Trusts that offers tgt 8% yield,
1) AssetLink - Investment linked insurance plan - Potential quarterly div of 8% pa of NAV of fund - Fund invests in 25 global utilities, infrastructure and real estate shares
2) AllianzGI RCM Global High Payout Fund - Unique Investment Strategy : The unique investment strategy comprises two parts: first, by investing in global high dividend stocks; second, by selling covered call options on underlying stocks to generate additional income. There is also potential for further growth should the underlying stocks appreciate in value. - 8% p.a. Potential Payouts : The potential 8% p.a. payouts are derived from stock dividends received and option premiums earned, and distributed twice a year.
For (1), as it's insurance linked, they'll deduct a few dollars fm you every mth (by deducting fm the no. of units u own).
For (2), I chk fundsupermart.com for the prospectus and other info. Fundsupermart classify it as high risk (their rating is 8/10 for risk).
After thinking and pondering, I think such high yield Unit Trusts are likely to be high risk also. even tho' they are better diversified, it'd be very time-consuming for me to chk whether they'd over-paid for their stks (ie. above NAV,...). I also don't like the high initial sales charge of 5% by OCBC (aro' 4.5% after discount ; fundsupermart charges aro' 2.25%) and the annual mgmt fees,...etc. For (1), I hv the additional dislike - it's linked to insurance and I don't hv that need.
In conclusion, I'll stick to my own investing of high yield REITs and SGX listed funds even tho' the risks r also very high. At least, I'll be in control of my own destiny and I'd be able to move in/out very fast if the need arises
PS. There're quite a few similar funds that pays div of 4-8% but info fm the banks selling such funds r usually very limited. A better source of info is fundsupermart as u can download the prospectus n fact sheet there.
