What is your thought process when choosing a fund to invest using your CPF-OA?

Hi Randy,

Try Endowus. They have several funds tracking US markets, one of which tracks the S&P500 index. They also have other funds benchmarked against world indices.

The thought process I adopt in investing my CPF is - what will almost certainly result in 2.5% returns over say a 30-40 year period? (Which for most young working adults, will be about the time they hit retirement age and want to withdraw their CPF.) Over time, markets tend to go up. Yes they'll swing high and low and whipsaw etc, but the trajectory is generally upwards. This trend is ultimately a combination of some markets booming and some markets flagging at any point in time. If you look at global markets over the last half century - no particular country has dominated for more than... say, two decades? But the MSCI World Index returned I think 7% on average annually in that period (numbers may not be 100% accurate, can't remember offhand).

The point is, if you're looking to invest your CPF for the long term, select a fund which gives you global exposure, that you get to harness the returns of any market which is performing well at the time, and don't miss out because you bet on one market which then proceeds to stagnate for decades (think Japan from 60s 70s 80s). Some people do this through ETFs like IWDA/VWRD. I'm not aware if you can invest your CPF in those though.

Hi Randy,

Look into Endowus. They have a funds tracking the US market!