Aviva Early Redemption of BIG e

Just got a letter from AVIVA about the notice of early redemption of BIG e.

Last year, I invested my SRS retirement fund to AVIVA Big e, to earns bigger return of 3.5% per annum.

To be fair, 3.5% interest rate with no lock-in period, is quite attractive compared to any fixed deposit rates offered by any bank here at the point of time.

This is one of the good option for low risk investments.

Due to interest rates is dropping everywhere, Aviva adjusted the BIG e interest rate to 2.75% at Jan 2008.

Now, the market is getting uncertainty, AVIVA is unable to sustain the attractive interest rate for BIG e. Therefore, AVIVA will return all the BIG e funds to it’s investor on 26th February 2008.

AVIVA BIG e

I’m now start searching for alternative to park my SRS retirement fund.

Any recommendation for long term and low risk investment products?

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One comment on “Aviva Early Redemption of BIG e
  1. YH says:

    Hi Han Neng, it is unfortunate that BIG E is not able to sustain the guaranteed interest rate. Leroy writes an interesting article on investments with guaranteed returns. Worthed a read [http://leroyang.blogspot.com/2007/03/big-e-by-aviva-good-buy.html]

    With regards to investment alternatives, have you considered Unit Trust funds, particularly Prudential’s?

    Here are some very good & valid reasons to invest in Unit Trust funds
    1. Unit Trust is now the investment vehicle of choice. They’re the most convenient vehicles for investing in asset classes that may lie outside your “circle of competence,” too, which is generally a good idea. Doing so can allow you to sleep peacefully at night, secure in the knowledge that folks who do understand, say, emerging markets and high-yield bonds, are busy building your nest egg.
    2. All investment funds have recently undergone market corrections and are attractively priced.
    3. Prudential has reduced its investment charges to as low as 1.5% for this window period.
    4. The Government is going to invest your SRS funds anyway. Interest rates will no longer be guaranteed after 2 years and the Special account interest rate will be pegged to an investment fund.

    Hope this is useful info. šŸ™‚

    Later,
    YH

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