Wednesday, September 29, 2010

CPF Investment Scheme

A CPF members can invest the savings in the ordinary and special account under the CPF Investment scheme to earn a better yield (hopefully) compared to the interest paid by the CPF. Here are some details of this scheme.

From 1 January 2011, the approved funds must meet the following 4 criteria:
  •          Lower expense ratios
  •          3 per cent cap on sales charges
  •          Three-year track record
  •          Top-quartile performance ranking among their global peers.

1 comment:

Unknown said...

Let's see.

Lower expense ratio... how low is considered low? I suggest 1.5% max, recommend 1.0% or below

3% cap of sales charge is reasonable, most online platforms already meet this.

3 yr track record is stupid. Past performance is no indicator of future performance

Top quartile performance ranking, that means only 4-5 star funds? Chasing yesterday's winners will be placing your money with tomorrow losers. Index fund which will run at 3 stars by virtue of their index nature. Will they be excluded then since they are expected to perform at the 50th percentile?

As usual, policymakers who make policy without a brain. How typical...

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