Read older post? Measure, Measure, Measure - Part 2
Three colleagues, a friend and a relative have asked me good to invest in SIA bond at 2.15% or not?
My responses to them:
- Do you want to lock in for 5-year for a mere 2.15% returns?
- Note that at such a low rate of 2.15% it may be easy to buy now but hard to sell in the market as the future buyers for this bond will have little meat left. Unlike buying preference bank shares at 4-5% yield it will still have some meat left for the future buyers e.g 3-4% is still not bad.
- Since it is lower than CPF OA risk-free rate at 2.5% so is it wise to take a non risk-free investment for a lower return?
I ask them to decide for themselves.
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