CPF Investment

[capri87]

Any recommendations on how we can invest our CPF and make it grow at a rate better than the default 2.5% ? And what are the pre-requisites for such investments? Thanks

 

[wahkao3]

good threaddd

 

[capri87]

thanks, but nobody support

 

[lzydata]

Too big a topic? Maybe you can be more specific after reading the CPF website on the CPFIS, such as what investments are allowed.

 

[makav31i]

can start by reading this link. This is the basic prerequisite.

http://mycpf.cpf.gov.sg/Members/Gen-Info/FAQ/CPFInvestmentSchemes

 

[capri87]

thanks for the link. I'll read up more from CPF website.

Anyway, the reason that prompted me to start this thread was because recently I got to know about this plan from Prudential. The gist of it is something like u need to fulfill these conditions to sign up for this plan. One of them is you need to invest 10K of your OA into their many choices of funds. Afterwhich, you must have at least 20K balance of OA in your CPF balance. In return, this can yield about 3-6% interest monthly for certain fund. Anyone know about this plan and is this viable? Or there are better options elsewhere?

 

[anfielder]

thanks for the link. I'll read up more from CPF website.

Anyway, the reason that prompted me to start this thread was because recently I got to know about this plan from Prudential. The gist of it is something like u need to fulfill these conditions to sign up for this plan. One of them is you need to invest 10K of your OA into their many choices of funds. Afterwhich, you must have at least 20K balance of OA in your CPF balance. In return, this can yield about 3-6% interest monthly for certain fund. Anyone know about this plan and is this viable? Or there are better options elsewhere?

Sounds like an elaborate scheme to rip you off in terms of fees.

 

[henrylbh]

thanks for the link. I'll read up more from CPF website.

Anyway, the reason that prompted me to start this thread was because recently I got to know about this plan from Prudential. The gist of it is something like u need to fulfill these conditions to sign up for this plan. One of them is you need to invest 10K of your OA into their many choices of funds. Afterwhich, you must have at least 20K balance of OA in your CPF balance. In return, this can yield about 3-6% interest monthly for certain fund. Anyone know about this plan and is this viable? Or there are better options elsewhere?

Better stay away. Your OA in excess of 20k earns min of 2.5% with capital save and sound compared to the product you mentioned. No fund can pay 3-6% interest monthly - not even 4% annually. If you still want to bet, go buy kepcor or ocbc and lock it for few years and most likely you are better off with dividend yield of more than 3%.

 

[winninglim]

hi. I've pmed you. Hope it helps.

 

[djchris]

Please stay away. I'm closing my Prudential plan because it doesn't even perform better than my OA account.

 

[anfielder]

Do not ever invest through insurance companies.

 

[antonpoh]

For all my cpf OA i choose to invest it here for 2-3yrs.
Bought this at 73c last year Sept.. now it's at 84.2c.

Eastspring Investments Unit Trusts - Global Technology Fund

Their Top 10 Holdings

APPLE INC - 8.2%
MICROSOFT CORP - 5.5%
GOOGLE INC - 4.1%
GOOGLE INC - 4.0%
ORACLE CORP -3.7%
FACEBOOK INC -3.2%
CISCO SYSTEMS INC - 3.2%
SAMSUNG - 2.8%
VISA INC - 2.6%
IBM - 2.4%


factsheet

 

[likchung]

If i am not wrong, Eastspring is managed by Prudential.

 

[antonpoh]

If i am not wrong, Eastspring is managed by Prudential.

Yup.. but best to buy it online through poems. Cheaper than buying with prudential.

Insurance agent can charge 10%? I know poems charge 0.75%.

 

[teejaywai]

Yup.. but best to buy it online through poems. Cheaper than buying with prudential.

Insurance agent can charge 10%? I know poems charge 0.75%.

The maximum they can charge is 3% for cpf investment. This is applicable if your invest through banks .

 

[teejaywai]

thanks for the link. I'll read up more from CPF website.

Anyway, the reason that prompted me to start this thread was because recently I got to know about this plan from Prudential. The gist of it is something like u need to fulfill these conditions to sign up for this plan. One of them is you need to invest 10K of your OA into their many choices of funds. Afterwhich, you must have at least 20K balance of OA in your CPF balance. In return, this can yield about 3-6% interest monthly for certain fund. Anyone know about this plan and is this viable? Or there are better options elsewhere?

3-6% monthly that fund is consider a high risk volatile fund. More likely an emerging market funds.
You should check on the fund fact sheet on the past performance of the funds , whether it outperform the market benchmark on a yearly basis.
You should also consider you would like to invest in industry specifics or country specific. It depends on your risk appetite
There are funds which do outperform the cpf 2.5%, so you do have to be selective in that .

Generally the sales charge would be 3% for a one time fee and 1.6% mgmt fee for the fund on a yearly basis.

 

[antonpoh]

The maximum they can charge is 3% for cpf investment. This is applicable if your invest through banks .

Not really, poems quote the UT price at 73cent and the agent told me if buy through prudential it's 80cent.

 

[limster]

Search function will find other discussions of Prudential CPF investment plans:

http://forums.hardwarezone.com.sg/money-mind-210/prulink-supersaver-account-3867768.html

http://tzlee.com/blog/2014/02/financial-lessons/

 

[Perisher]

Search function will find other discussions of Prudential CPF investment plans:

http://forums.hardwarezone.com.sg/money-mind-210/prulink-supersaver-account-3867768.html

http://tzlee.com/blog/2014/02/financial-lessons/

Wah TS first post already say 4% lost using this despite buying after the crisis in 2009-2012...

 

[makav31i]

I think the TS does not know that the first $60,000 in the CPF gets an additional 1% interest so you get up to 3.5% in your OA and up to 5% for SA.

If you are risk adverse and want to get 4% to 5% of interest per year, might as well transfer the existing additional OA into the SA account and ignore all those insurance agent trying to sell you their products which may or may not make money for you.