In this forum, there are topics around diversification of assets and passive investing. Do you think it makes sense to invest in both CPF OA & SRS in Endowus?

Around 20% of my income are in saving plans and I have around 100K in CPF IS managed by my FA. DCA for CPF IS was 5 yrs ago due to the need for housing. I am thinking of expand my investment in other instruments and will like to start with cpf oa or srs first before using cash. I have been hearing alot about Endowus and it is quite simple to invest with them by just setting the risk profile. Do you think it is advisable to stick to one investment strategy for long term funds?

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Shengshi Chiam, CFA

22 Jun 2020

Personal Finance Lead at Endowus

Hi Anon,

I personally am sticking to one simple investment strategy for all my investments, which is to be globally diversified, passively allocated across equities and bonds, and investing consistently in a low cost manner.

I don't see that there is a need to diversify across brokerages and roboadivsors, into cryptocurrencies, golld etc. Diversification for the sake of it is confusing and sometimes it uses a lot more work than necessary. Hope this helps!

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Ng Wei En

20 Jun 2020

Analyst at Mastercard

I would prioritise investing SRS in Endowus because funds left in SRS only earn a miserly 0.05% p.a. where as CPF OA earns up to 3.5%.

Having said that, there is also nothing wrong in deploying funds from both into Endowus or for investment-related purpose.

The most critical factor for most is probably ensuring you have enough CPF OA for the downpayment of a property you intend to purchase in future or to finance your future/existing mortgage loan for X number of months as a buffer in the event you lose your source of income(assuming you finance your mortgage by CPF OA).

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