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. www.tankinlian.com/latest.aspx
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.
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...
Let's see.
ReplyDeleteLower 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...