AXA Wealth Treasure is an investment-linked insurance product offered by AXA agents and financial advisors, and it is often positioned as a medium to a long-term regular savings plan. It belongs to a category of ILPs that can be used purely for investment, without any insurance element.
Given that the purpose is solely for investment, you might wonder why people would use an ILP for such a purpose. There are 3 main reasons why people would want to structure their investments through such a platform:
- Minimize/avoid inheritance taxes
- Minimize/avoid capital gains taxes
- Gain access to funds that are typically only available to institutional or accredited investors
For locals, given that there is no inheritance or capital gains tax in Singapore, the main reason why AXA Wealth Treasure might appeal to them is primarily because of the access it gives to funds which they would not be able to otherwise access. These funds have the potential to offer them superior returns at lower risk thereby enhancing their investment portfolios.
AXA Wealth Treasure’s minimum saving amount starts from S$300/month, and there is flexibility to access or withdraw the accumulated monies as required (subject to partial withdrawal charge).
Image is taken from www.axa.com.sg
Pros of AXA Wealth Treasure
- Access to superior funds usually reserved for high net worth investors
- Startup and loyalty bonuses resulting in competitive pricing
- Direct control over investment mandate
- Tax efficiency
- Life Replacement option available
Cons of AXA Wealth Treasure
- Sub-optimal if used to access funds which are more efficiently accessed through other platforms
- Liquidity profile more restrictive with partial withdrawal charges and early encashment charge on entire RP account value
- Investment returns not guaranteed
To view simulations of AXA Wealth Treasure investment returns on year by year basis and discover how exactly you can utilise the bonuses to boost your investment returns
To learn more about the ‘superior’ funds on AXA Wealth Treasure that can complement your investment portfolio
To understand the ‘liquidity profile’ of AXA Wealth Treasure and find out how it compares to other similar plans in the market.
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Besides AXA Wealth Treasure, you may want to read our post on another investment insurance plans here.