COMMENT POSTED IN MY BLOG
Mr Tan, someone like yourself needs to tell the guys at CPF exactly that a fund is safer than buying a stock.
The guys at CPF are wasting money getting the fund rated by Mercer. This indirectly means that consumers wil end up paying for something that is actually better for the average conservative investor.
It is bizzare that CPF allows someone to buy up to their stock limit in one stock while "worry" about someone buying into a fund.
The CPF guys are either trying to protect themeselves by getting the fund mangement company to pay Mercer so that Mercer can be used as a scapegoat if something goes wrong.
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REPLY:
Not all funds are well diversified and safe. It is necessary for the fund to be rated. This is why CPF appointed Mercer to do the rating.
None is safer than leaving your money in the CPF. This has been proven again and again and again.
ReplyDeleteWhen CPF opened up for purposes other than its original objectives it was a big mistake.It opened up because members wanted it .Members thought they were savvy and cleverer at investing than the CPF, instead what a mess they have made to their hard earned money. Many today do not have enough to set aside for minimum sum in the retirement account.What do you think are the reasons? Who benefited from all these changes? Definitely not the administrator and the members!
The so called investment advisors; the insurance agents; the stock brokers,the product manufacturers, the market makers etc etc; for these people CPF is a gold mine. When things go awry there will be a lot of finger pointing, except ourselves.Scapegoats? Maybe CPF when it closes up again in the future.