Endowment Investment TV

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The general view of investing in Endowment Policy



Endowment Policy

The endowment policy is a type of life insurance policy that designed to pay a lump sum at a certain time or if the person dies an endowment policy may mature at ten, fifteen, or twenty years and some of these policies may also provide money if there is a serious illness. Endowment policies are generally the traditional with-profits or unit-linked and with unitised with-profits funds.


Surrender Value and Adjusted Market Value

Endowments can sometimes be chased early or surrendered early and the policy holder receives the amount of the surrender value determined by the insurance company. How much is received is going to depend on how long the endowment policy has been in effect and the amount paid in to it. Under bad investment conditions the encashment or surrender value may be reduced by a market value adjuster to squeeze out some cash during the time when investment conditions are not good and this means the investor will received only the surrender value minus the adjusted market value.

China's red-hot property market shows no signs of slowing

THE RISE OF CHINA
By Charles Riley @CRrileyCNN May 20, 2013: 1:12 AM ET
Article from http://money.cnn.com/2013/05/20/news/economy/china-property/index.html

Property prices in China increased again in April.
HONG KONG (CNNMoney)

Property prices continued to rise last month in China, defying policymakers who have sought to cool the housing market while preserving robust economic growth.

Housing prices rose in 68 of 70 Chinese cities in April when compared to the previous month, according to the National Bureau of Statistics. Compared to last year, prices were higher in all but two of the 70 cities tracked by the government.

Prices in the capital, Beijing, registered one of the largest increases, rising 10.3% over the previous year. In the southern manufacturing hub of Shenzhen, prices jumped 11.3%.

On average, new home prices across the cities increased 4.3% over the previous year.
Fearing the development of a real estate bubble, China has sought to stem rising property prices in recent months. But policymakers have also been forced to consider the broader impact of such policies as China's economy shows signs of slower economic growth.

"This [data] suggests that polices aimed at cooling the property market have not yet tightened sufficiently," said Zhiwei Zhang, an economist at Nomura. "We believe this will add further pressure on the government to tighten monetary policy in the months ahead."


China's urban housing costs have grown for much of the last decade, sparking a cycle of government reaction. Earlier this year, the central government directed local governments to rein in housing prices by April 1.

Authorities in Shanghai told banks to stop issuing loans to individuals attempting the purchase of a third home.

Beijing announced that single residents will now be allowed to purchase only one home. Both cities said they would strictly enforce a 20% capital gains tax on income earned in property sales.

The announcements set off a fresh wave of buying to beat the restrictions, and some couples even hatched schemes to skirt ownership restrictions by obtaining a divorce.

Yet additional measures may be required if the market does not soon show signs of deceleration.

Citing rampant speculation and poor planning, some China analysts are worried about the development -- and possible deflation -- of a housing bubble. Chinese citizens have limited investment options, and real estate is a popular choice for those looking to expand their portfolio.

Yet other analysts insist that fears of a bubble are overstated. Hundreds of millions of Chinese are expected to move from rural areas to cities over the next decade, they say, and demand is likely to remain strong.  




Charles Riley @CRrileyCNN May 20, 2013: 1:12 AM ET
Article from http://money.cnn.com/2013/05/20/news/economy/china-property/index.html