Wealth Accumulation

Why you should invest your EPF into Unit Trust?

  •   You have alternative option to switch your EPF fund to Unit Trust funds that are approved by EPF. EPF gives you approximately 6% return every year. However, Unit Trust gives you potentially 10% return in every year.
      You don't have to be rich to start investing your money for better future.
      Compounding is the 8th Wonders of the World - Albert Einstein

Why Invest Using EPF?

The main objective of EPF Member Investment Scheme is to maximise our retirement fund in EPF. However, there are some conditions to be met before we can withdraw our EPF for investment purpose. This is to safeguard our retirement fund so that it will not be exposed to too high risk investment. There are 5 Benefits of EPF Member Investment Scheme:

  • Better Return in Long Term
    Unit trust funds usually have better return in long term, potentially 10% per annum, comparatively to EPF return which averagely 6% per annum. As we still have long way to go until the eligible age to withdraw our EPF, we can always invest our EPF money in long term. This will definitely lower the risk of investment and have more time for our money to grow.
  • Lower Service Charge
    EPF has fixed the service charge of EPF Member Investment Scheme into unit trust to be 3%, instead of normal service charge 5.5%-6.5%.
  • EPF Pre-select Funds
    Many investors will face difficulties in choosing funds to invest as we always worried of choosing the wrong funds. For EPF Member Investment Scheme, EPF has already pre-selected certain funds as Approved Funds.
    These funds need to have 3 years track records, less than 30% foreign exposure and the performance should not be lower than EPF dividend.
  • Transparency
    Unit trust investment will provide you the investment details via the interim report and annual report, in which you will be informed on the asset allocation and portfolio of the particular fund. Whereas EPF will not inform members about their investment details and portfolios.
  • Diversify Your Retirement Fund
    Don't put all the eggs in the same basket, same goes to your EPF.

Since EPF is our future retirement fund, will it be too risky to use it in investment? What will happen if the market collapse when we attain the age of 55 years old?

We believe that these are the common questions that we will ask.

In fact, Unit Trust has set a basic saving amount as the baseline before we can withdraw money from our EPF account 1 for unit trust investment.

The basic saving amount is based on the age of the member, and it will be revised periodically to ensure members have a basic level of savings remained in their EPF.

Therefore, you money will not be exposed to too high risk in overall even though you withdraw your EPF money for investment.

More over, EPF has selected certain unit trust funds as Approved Funds for members to invest in. Therefore, members will only invest in funds that have good track records and stable performance.

If you are interested in thd EPF Member Investment Scheme or wish to know more in details, you can always CONTACT US.

Criteria to fulfill for EPF Investment

In addition to investing in unit trust by cash or through a regular savings plan, you can also invest using EPF Members' Investment Scheme. The EPF will process a request to transfer an amount from a member's Account 1 to approved unit trusts funds if :-

  • The Account 1 balance is not less than the required basic savings, details of which are enclosed in the table 1 as prescribed by the EPF for respective age of the EPF members.

    Table 1 - Basic Savings Amount in Account 1

    Click Here to enlarge

  • The member is less than 55 years old
  • An account in the approved Unit Trust Scheme has been opened into which the transfer can be processed
  • No transfer has been made in the previous three (3) months from the EPF Members' Investment Scheme. Transfers under the EPF Scheme is made at an intervals of three (3) months from the date of the last transfer, subject to the availability of the required balance in Account 1.
  • The amount to be transferred is not more than 20% of the Account 1 balance remaining after deducting the required amount of basic savings prescribed by the EPF (subject to minimum of RM1,000).
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