| CPF – Central Provident Fund |
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The Central Provident Fund (CPF) is a comprehensive social security savings plan that has provided many working Singaporeans with a sense of security and confidence in their old age. The overall scope and benefits of the CPF encompass the following:
* Retirement
* Asset Enhancement
* Home Ownership
* Healthcare
* Family Protection
To enhance your retirement savings, you can invest your Ordinary and Special Accounts savings under the CPF Investment Scheme. The CPF Investment Scheme allows you to invest in Unit Trusts, Exchange Traded Funds, Shares, Insurance and more. For your information, you are able to use up to 100% of your CPF monies (Ordinary / Special Account) for unit trust investment after setting aside the Minimum Sum under the CPF Minimum Sum Scheme. Please refer to Minimum Sum Scheme below the page.
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| Why invest your CPF money with eUnitTrust |
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CPF Investment Administrator (CPFIA)
 eUnitTrust is a part of Phillip Securities Pte Ltd ("Phillip Securities"), and Phillip Securities being a CPFIS Investment Administrator, is able to draw CPF monies directly from agent banks. It translates to savings in agent bank transaction charges for your unit trust transactions.
| NON CPFIA |
CPFIA (Phillip Securities Pte Ltd) |
| Between $2.00 and $2.50 per 1000 units, subject to a maximum between of $20 and $25 per transaction |
Between $$2.00 and $2.50 per transaction |
| Buy $10,000 each into 3 funds at $1 |
| Maximum agent bank charges: $75 = $25 x 3 funds |
Maximum agent bank charges = $2.50
Your Savings = S$72.50 |
| Sell 5,000 units each into 5 funds |
Maximum agent bank charges: $62.5 = $12.5 x 5 funds
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Maximum agent bank charges = $2.50
Your Savings = S$60 |
| Switch 10,000 units into 1 fund at $1 |
| - Switch designated by fund house |
Agent bank charges: $0 |
| Maximum agent bank charges: $0 = $0 x 1 fund |
Your Savings = Same |
| - Switch designated by us (sell follows by buy) |
Agent bank charges: $0 |
| Maximum agent bank charges: $50 = $25 x 2 transactions |
Your Savings = S$50 |
| Source: CPF Board |
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You also save CPF service charge
Because all your unit trust holdings purchased through Phillip Securities are bundled under Phillip Securities nominee, the CPF Board considers it as one transaction.
| NON CPFIA |
CPFIA |
| $2.00 per unit trust fund per quarter, subject to a minimum of between $2 and $5 |
$2.00 per policy per quarter, subject to a minimum of between $2 and $5 |
| Hold 10 funds |
| $80 per annual = $2 x 10 funds x 4 |
$8 per annual = $2 x 4 |
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Your Savings = S$72 |
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Diagram to illustrate the flow of the collection of CPF monies for an CPF Investment Administrator.
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Important Note:
CPF Minimum Sum Scheme
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CPF OA monies:
Effective 1 May 2009, members are to set aside $20,000 in their Ordinary Account before they can invest the monies.
CPF SA monies:
Effective 1 May 2009, members are to set aside $30,000 in their Special Account before they can invest the monies.
Effective 1 July 2010, members are to set aside $40,000 in their Special Account before they can invest the monies.
The above restriction is in place because of the extra 1% interest that you will earn on the first $60,000 of your combined CPF accounts from 1 January 2008.
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How can you invest your CPF funds?
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Check out our list of approved CPFOA-IA / CPFSA-IA / SRS-IA funds. We have an array of funds to suit a diverse group of needs.
Think Big, Start Small
You can start small by utilizing our regular savings plan to meet your retirement needs on your CPF funds. A small amount every month goes a long way. So, do not procrastinate further and start today!
Consult a professional and get on track
Still unsure which funds will help you achieve your financial goal?
We are here to help! Contact our wealth consultants for financial guidance.
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