Wealth Accumulation in Singapore: Understanding Risk Before Return

Should I invest or keep money in a fixed deposit?

It depends primarily on when you need the money. Fixed deposits generally provide a stated rate and principal repayment at maturity under their terms, while early withdrawal can reduce interest or involve fees; investing involves risk to capital and is generally assessed over longer horizons.

Before investing, it is worth confirming that you hold enough accessible emergency cash and that you would not need to withdraw the invested amount at short notice.

Investment returns are not guaranteed. Values can fall as well as rise, and you may receive less than you put in.

What is the difference between guaranteed and non-guaranteed returns?

Guaranteed benefits are contractually promised in the policy. Non-guaranteed benefits are projections dependent on future performance or bonus decisions, and may be lower or nil.

Product illustrations usually show both side by side. Read the guaranteed column as the contractual floor and treat non-guaranteed figures strictly as illustration only.

Historical performance and distribution rates describe the past. They are not indications of future returns.

What fees should I ask about?

Ask about distribution or policy charges, fund management fees, insurance charges within a policy, surrender charges, and recurring administration fees.

Every one of these should be answerable from the product summary and illustration. If a charge cannot be explained plainly, keep asking.

• How much of my contribution is actually invested in the early years?
• What ongoing charges are deducted, and from where?
• What happens to charges if I reduce or pause contributions?
• What would I receive if I exited in year 1, 5 or 10?

What happens when markets fall?

Investment values fall when markets fall. What matters is whether your time horizon, cash reserves and risk comfort were set realistically at the outset.

Decisions made under stress — surrendering, switching, or stopping contributions — can permanently affect outcomes. This is why liquidity and horizon are agreed before, not during, a decline.