So what do we do when we don’t understand such things? We leave it to the experts!

Unfortunately, experts are being called experts because of few things and one of them is that they don’t come cheaply. So we end up paying some of our $$ in order to have these experts manage the complicated stuff for us.

To be honest, I feel that all these new types of investment only benefit none other than the financial institutions and the people working for them. For an investor, the return has been lowered due to the number of layers which appeared out of nowhere, in between the investor and the money they invest in (the experts are in some of the layers). The more complicated an investment type, the more layers there will be, and the more money they will charge you.

So most investors end up in a dilemma, we are paying people to reduce our return of investment. And then we start to complain about the low rate of return. Yet, most cautious investors do not dare (some are lazy) to venture outside and control their investments themselves.

What’s next then? Well, my advice to you is simple. If the financial system comes out with very complicated things, and if you cannot understand, then don’t go into it. Don’t ever pay someone to manage for you because the return of investment will be so low that, well, it’s better to just pump into Fixed Deposits. If you want better return, then manage those investments yourselves unless you are so rich that you wouldn’t mind those additional charges. But that’s another issue altogether.

Conclusion, manage your own investments if you want better return (higher risk though so you must know what you are doing) but if you prefer to let the experts handle things for you, then be prepared for very minimal returns.