OCBC Preference Shares

MR TAN
I believe you have saved many people, especially those who read your blog. You always educate us not to buy complicated structure products (Mini bonds, Pinnacle notes etc)

I am fortunate that I take your advice to invest only in low cost fund(NTUC INCOME Growth Fund), STI ETF Fund & many endowment policies from NTUC Income.(I bought it 15to 20 years ago)

I have about 100K from my matured policy from NTUC Income, I do not know what to invest, so I have bought 50k of OCBC Preference shares recently(It give 5.1% dividend). Now the market is so bad, I am worried about my Preference shares will become Mini Bonds.

Please advice me whether preference shares is safe to invest & also tell us more about preference shares.

REPLY
In my view, the OCBC Preference Shares are quite safe. I will be buying some of these shares for my investments. They will not be like MiniBonds - as they are entirely different types of investments.