Investing cpf

Depends on when you plan to get your house (if it is 3-5 yrs, maybe not) but if it is going to be 10-20 yrs, then i guess you can

Hi Yu Xuan,

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I would discourage you from investing your CPF-OA in a hope to build up your funds for housing within the next few years. Your investment horizon is too short and there is a real risk of losing capital.

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While it is not difficult to outperform the guaranteed 2.5% interest on the CPF-OA, markets have been volatile and uncertain with a myriad of geopolitical events happening in recent months.

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Some people may choose to invest part of their CPF-OA to earmark an amount which will not be locked into housing and can be divested at a later date for other purposes such as retirement. You can also choose to transfer from OA to SA if your objective was for retirement.

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I'll suggest keeping your funds in CPF-OA and maybe consider cash top ups instead (Voluntary Contribution - 3 Accounts which will be split according to your working contribution rates). Every additional dollar adds to your ability to afford a house in the next few years.