Pru PruFund Protected Cautious Account S5

masonic

Alexland said:

Here is how it works on an unprotected PruFund, you can get some sharp drops

My initial reaction is: what's the point?

I can at least understand the attraction of the Protected PruFunds

Alexland

I don't really see the point either and I think they have stopped selling the protected prufunds now.

dunstonh

The old Pru WP fund used to have protections as default and at no extra cost.   Some of those old plans are gems and we have some late 90s, early 2000s ones still running with our clients because they are at 1% p.a. with capital security and reliable and consistent returns.   A good example of an old fashioned product that does the job better than a modern product/option.  
Then over the years, with increased solvency requirements and costs, it was no longer possible to offer the fund as cheap as it was.   So, Pru came out with this unprotected version and protected version at different costs.     
The unprotected one is largely pointless as if you accept volatility then you would not use the pruofound.   The protected one I am not a fan of because of its cost.  However, it does have a niche market where it could be suitable.