TheStar
KUALA LUMPUR: CIMB Wealth Advisors Bhd expects to sell 5,000 packages annually of its flexible 3-in-1 education plan that doubles up as a savings plan for those without children or other beneficiaries.
The plan is a collaboration with CIMB Aviva, CIMB Trustee Bhd and CIMB-Principal Asset Management Bhd.
Chief executive officer Tan Beng Wah said the target was to sell 400 packages a month or up to 5,000 packages a year.
“Households today spend on average 5% to 7% of their annual income on education, with most of them depending on investments or scholarships for their children's tertiary education,” he said at the plan launch yesterday.
Tan said although households had seen their discretionary spending curbed due to the escalating costs of living, the plan came at an opportune time since there were no such product in Malaysia combining investment, insurance and nomination services.
The package's investment feature is based on an evolving strategy whereby investments are made in higher risk products in the beginning and in lower risks or fixed-income products as the plan nears maturity.
Tan said the package's insurance or takaful feature would safeguard the fund in the event of death or disability while the trust would make sure the beneficiary received the amount at maturity.
The 3-in-1 education plan combines unit trust investment, insurance or takaful coverage and trust nomination services. It is targeted at households with a monthly income of at least RM5,000.
The package is available in the conventional and syariah-compliant versions, with investment tenure from nine to 20 years and a targeted savings horizon.
The minimum initial investment is RM1,000, excluding nomination fees. After that, it would depend on the investor's package timeline and amount to be saved.
Tan said CIMB Wealth Advisors was also looking at rolling out post-retirement and other long-term investment products.
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