Chances are you’ve come across individuals who do not see the money they have saved with CPF. Or maybe, you know one or two people who regularly complain about the interest rates of the CPF accounts being too low to combat inflation. Well, this does not mean you should give up on your CPF investment in Singapore since more is set to come your way provided you understand what is expected.
But how can you pull this off successfully? Well, the secret lies in settling for the CPF Investment Scheme (CPFIS) as it is certainly going to save the day. In this article, we will take your through some of the things you need to know about investing with CPF.
Eligibility for the CPF Investment Scheme
Before opting for CPF investment Singapore, you ought to know that there are a few requirements one must meet. However, there are two different requirements for the CPF account balance since there are two CPF investment schemes i.e. one for OA and one for SA. To give you a slight insight into what you should expect, using your OA savings as an investment CPFIS-OA, allows for more investment product options to choose from.
Some of the most notable investment product options include shares, gold, higher-risk ETFs and unit trusts. These are benefits you will never enjoy the moment you decide to go with CPFIS-SA. Either way, it is better to examine the pros and cons of both these two before jumping into conclusions.
Potential Returns of CPFIS Investment
Well, this is not something you can tell that easily considering there is a wide range of products available. For instance, unit trusts tend to be generally higher risk, higher returns. Things tend to be different with bonds as they happen to be lower risk, lower returns. To be on the safe side, you can opt for a CPF investment Singapore that at least earns more than the risk-free interest rates of the CPF Ordinary Account and Special Account.
These are just but some of the things you need to know about investing with CPF. Of course, there is more to it and that’s why you are better off hiring a financial advisor. That way, you can navigate through all the pitfalls while at the same time making a well-informed CPF investment Singapore decision hassle-free.
Lina Mark is the Partner and Editor-In-Chief at Keulj.us. She loves technology and is always hooked on new technology in the market. You will often find her browsing the web for interesting content (mostly sci-fi and tech). She is addicted to movies (mainly action) and loves to read interesting books every once in a while.