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InvestmentLinked Products (ILP)ILPs haveboth life insurance and investment components. ILPs usually do not haveguaranteed cash values as it depends on the sub-fund’s performance. ILPs have alow to high risk, depending on the risk of the sub-funds. EndowmentEndowmentare often used to build up savings over a fixed policy term. Premiums will beused to pay for insurance protection while the rest are invested and aresubjected to investment risk. Endowment policy usually mature after a fixed period,usually 10, 15, 20, 25 or 30 years. UnitTrustUnit trustis a fund that pools together investors’ money whereby they will invest in a portfolioof assets. Unit trust have a low to high risk, depending on which type theychoose.

 EvaluationWerecommend unit trust to Ann. This is because she needs to prepare a sum for herchild’s marriage and help in the initial down payment for purchase ofhouse. Both ILP and Endowment are insurance with a fixed maturity period.

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Iftheir child needs the money before the maturity period, the client will not beable to cash out their insurance policy. Hence, unit trust, which can be easilyliquidated within a short period of time, is recommended. Furthermore, theyalready have several existing insurance policies, hence, their risks arealready sufficiently covered. Unit TrustAIA Regional Fixed Income Fund. This fund provides stable income with capital preservationby investing primarily in high credit quality fixed income instruments. Thisfund does not pay-out dividends but carries lower risk.

 NTUC Income Asian IncomeFund. Thisfund aims to provide income and capital growth over the medium to long term.This fund invests in Asian equities such as real estate, and Asian fixed incomesecurities. The fund carries high risk.  Great Eastern GreatLinkGlobal Bond.

This fund minimize volatility relative to the benchmark but tires to achieveexcess return relative to the index. It is broadly diversified as it primarily investsin a portfolio of investment grade bonds. It has a low to medium risk. RecommendationGreatEastern GreatLink Global Bond. SinceAnn needs to prepare a sum for her child, 

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