Rabobank Certs Series 1

Here are the key features of this investment, as reported in their advertisement:

* the certificates are NOT principal protected

* four blue chip Singapore companies are listed as the underlying shares

* if, on the valuation date, the price of at least one of the underlying shares is below 88% of its launch price, the investor may sustain a partial or total loss of its investment

* the certificate performs best when the share price is between 88% and 95% of the launch price during the entire life of the certificate

* investor will receive the maximum return of 20% if a Knock-out Event has not occurred, the closing price of each underlying share is above 88% of its launch price at each quarterly valuation date, and the certificate has not been terminated earlier.

* the certificate is subject to early termination if the closing price of each underlying share is above its Knock-out level at the quarterly date.

To understand how this product works, the investor is required to read the prospectus.

I cannot understand the logic of this product. There are so many uncertainties. It is not worthwhile for me to figure out this complexity.

Lesson: Do not invest in any complicated product that you do not understand. You do not know if the terms are fair to the investor.

Travel Insurance

Here are some of the common claims under travel insurance:

* flight delay
* loss of baggage
* medical expenses

If you suffer from food poisoning while on travel, and need to be treated, the cost is covered by the travel policy. The medical bill in Canada, for example, is SGD 300.

The travel policy also covers medical evacuation, caused by an accident. If the injured person needs to be flown back for treatment by air ambulance, the cost could be SGD 100,000 or more. This is covered under a travel policy.