After emptying my CPF coffers for the purchase of my HDB apartment, it took a little while before my CPF monies slowly built up in excess of S$20,000. Yesterday, I dropped off an application form to POSB to open a CPFIS-OA account.
Continuing off from the previous post on CPF Investment Scheme - Ordinary Account (CPFIS-OA), it seemed like the webpages of the different banks have contradicting information. Thus, I decided that the CPF official website would be able to provide the authoritative source of information and came up with the below for CPFIS-OA.
Up to 100% of investible savings can be invested in
Fixed Deposits
Singapore Government Bonds
Statutory Board Bonds
Bonds Guaranteed by Singapore Government
Deferred Annuities
Endowment Insurance Policies
Investment-linked Insurance Products
Unit Trusts
Exchange Traded Funds - This is what we're interested in!
Fund Management Accounts
Up to 35% of investible savings can be invested in
Shares
Corporate Bonds
Up to 10% of investible savings can be invested in
Gold
If I have S$30,000 sitting in my CPF Ordinary Account, then I can invest S$10,000 into ETFs. Currently, there are only two ETFs allowed - SPDR Straits Times Index ETF and ABF Singapore Bond Index Fund.
STI ETF also needs dollar value averaging. Not fixed dollar/month averaging. i think dollar value averaging (buy more in Bear Markets) is the better option in the long run. Not vested yet. i am just thinking where to "safely" invest my CPF money rather then individual counters.
ReplyDeleteActually we can mimic the STI ETF portfolio but brokerage fees may be too expensive, i think. On the other hand, dividends received for the mimic portfolio may be higher. What do you think?
Agreed. With the restriction of a low monthly contribution ($300) there isn't much room for flexibility. Re-balancing once or twice yearly allows for "buying more" in bear market in the long run. Not sure of the amount you intend to invest - too many counters is going to incur you high fixed cost, not to mention the transactions involved. Try doing some estimations?
ReplyDeleteCPF Investment Account for Index Investing. Can you use money from your CPF to do index investing? Yes! If you are using your money. what is a gold ira
ReplyDelete