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Anonymous
Do you think we should invest using CPF/SRS?
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Jiayee
12 Dec 2020
Salaryman at some company
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Hi Anon, another way to look at this is that through careful fund selection, you'd be diversifying your risks as many CPF/SRS-approved funds would have concentration risk limits e.g. single name / issuer / group / country / geography / rating etc limits. Contrast this with taking single-name risk through stock / bond / etc selection.
Depending on your risk appetite (time horizon / liquidity needs are somewhat irrelevant here given both are retirement savings vehicles), there may still be some yield pick up for SRS (having the cash sit idle earns near-0 interest rate in the SRS account). Using CPF requires more thought and homework, as the baseline interest rate of 2.5% minimum currently (risk free!) is already quite considerable.
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Dora Seow
09 Dec 2020
Country Head, Singapore at Franklin Templeton
One should consider using CPF/SRS to invest in funds, although it should not be the only mode of inv...
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Haven't considered CPF yet but I contribute to SRS (and invest the contributions) for tax savings.