Investment Platforms

Investment platforms offer a wide range of returns for investors along with the risks associated with the such investments, which can fluctuate. If you are not a sophisticated investor, you may rely on a broker or a financial adviser. There may be fees and charges that apply, and the funds could also be locked in for a period of time. Investment platform whilst attractive is not specific in terms of what the funds can be used for. As clearly the objective here is for general growth of funds and not for health.

What if the funds you set aside are lost or diminished in a financial meltdown. For example, what if your funds suffered losses like in the GFC when the ASX fell by 54% over 16 months.

XHP

XHP is a health specific platform where the objective of the Scheme is to help you accumulate funds in a low risk environment for your health needs. The funds are held in cash or cash deposits that return an interest which is paid to you in full and added to your account balance.

Significant Risk associated with your funds with XHP are

1. Interest rate fluctuations offered by banks
2. Collapse of the Bank where funds are held
3. That you may not have enough funds held with XHP to cover required medical treatment at any given time. If this is the case, then you will be required to meet any difference between the cost of treatment and the funds held with XHP.

Whilst the interest rates vary. The risk associated with Australian banks folding up is minimal as the banks are well regulated