I invested $50,000 by taken loan from Manulife which was invested by them only in Manulife GIF select plan. The advisor rushed to the papers signed at workplace @ 8am after confirming that we can repay the amount anytime. Since, now the funds are valued at 48800, we decided to book loss and contacted her to close the account as I am paying interest of $170 every month.

But, now I am told by advisor that I have to pay penalty of 5.5%, which means $1200 capital loss, $2500 approx for penalty + $1400 paid as interest. Being salaried, this is huge loss for me. Can I get some advise as to what I should do. Hold on for index to go up or book loss and get out. Also, can I fight against this financial advisor wit Manulife to get waiver on penalty atleast ?

These kind of plans are for long term and intended to give some guaranteed income each month after say 20 or so years.

There is a market exposure to all equity plans and hence you see negative growth. You can opt for a conservative portfolio in the interim to avoid losses. Not just you , almost all lost money in stocks or products exposed to stocks. The plan you purchased is no different. You should know that. What is there to fault an advisor. These kind of plans are not to be rushed in and do not expect immediate gains. It is all long term.

I would not recommend taking a full 50 K loan and invest in such a plan. If you have say 35 K, you can take 15 K and then invest. that would cause less pain to you.

You can try to get some waiver but that would depend on how you present your case. In any case, they would advise you to contact your advisor or go through your advisor. Try to sort it with your advisor else, try talking to the company directly.

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