KCLau's Money Tips Forum

[goh]

Hi KC,
Good day.
Can you comments on this Takaful Malaysia plan call MyAl-Afdhal?
It is a 5 years plan with Capital protection.
Projected yearly dividen is 10-15%.

http://www.takaful-malaysia.com/V5/imag ... afdhal.pdf

[KCLau]

Hi Goh,

I just managed to study the plan by reading the prospectus you posted.
It is a structured product, similar to single premium investment-linked policy.

In my opinion, it is a product launched at the right time when the market is quite hot about investment in commodity. I would say it is somehow similar to the recently launched structured products, such as CIMB Islamic Commodities Structued Fund, and the PNB Structured Fund. (http://kclau.com/investment/pnb-sif/)

The prospectus is well-written and gives very clear explanation of basically everything you want to know about the fund. If you are a conservative investor who has an investment horizon of 5 years, looking for alternatives to FD, and need exposure to Japan REIT, Euro Bond, and Commodities, this product might suit you well.

The main difference of a Takaful / Investment-linked plan is the additional charges for protection. This plan will pay 125% of the money you invest or the current investment value whichever is higher, upon death. The charge is 3% initially, plus another 0.5% for the insurance. To invest in structured funds, I would prefer the one with lower upfront fees.

If the similar product offered by unit trust is charging 3.5%, same as this takaful plan, I would prefer takaful because of the extra protection.

Please note that the PNB Structured Fund's service charge is only 1.5%. You might want to check the other similar structured funds before putting in your money.