I got to know of Prudential's new product PRUinvestor guaranteed plus only recently.
From agents, it is said to be 1) 100% Capital Guaranteed at maturity, 2) 2.5% p.a. interest guaranteed (Total 13.14%), 3) able to accept both cash and SRS, 4) and telling people application date for such "cool" product is ending soon but that's not really the case. I do not like the way products are marketed by agents.
1. 100% Capital Guaranteed at maturity
It is not really 100% guaranteed if it is guaranteed upon 36 months.
2. Sometimes marketed as 13.14%
This is a common tactic to "fool" aunties and uncles who are unaware of the compounding effect.
3. Able to accept SRS
At the rate of 2.5% p.a., I would say investing SRS monies in such product does not make sense to me since the new CPF interest rate structure is close to 2.5% p.a. too. At least CPF is truly 100% capital guaranteed.
4. Publish application date to be earlier than actual
This tactic attempts to make consumers make rash decisions. By the way, this product is available till 13 November 2009.
