Maybank Al-Sayf Structured Islamic Deposit - Commodities Investment

Financial products in Malaysia are really getting more sophisticated. Maybank has introduced a structured deposit cum investment product. Structured investment is a form of investment that can potentially bring about higher returns compared to fixed deposits. But as we all know, risk and return always goes hand in hand. Hence, structured investment also comes with higher risks.

This Maybank structured investment product offers exposure to commodities like energy, metals, soft commodity (sugar, wheat, etc.). Many commodity prices have corrected and dropped from their high levels many months back and are highly volatile now. Maybank will trade and attempt to profit from taking long or short position based on their own trading signals. But as we all know, you may make or lose money with all trading activities.

But the good thing is, the principal is guaranteed. So you won’t lose your investment provided you stay invested for the entire 3.5 years period. Also, you are guaranteed a 1% interest every year. That’s lower than the average FD rate of 3.5% now but you stand to make much more if Maybank does a good job in reading the trading signals and executing the trade profitably!

Personally, I think investors with moderate risk appetitie can consider having this in their portfolio as it’s a safe and cheap (compared to the service charges of unit trust) way to gain some exposure to the exciting commodity market!

Read more about structured investment here