How do I purchase stocks using my CPF OA? My UOB seems to be linked with my CPF (can see investible amount) but I'm not sure how to purchase stocks, can someone guide me please? - Seedly
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M.L.

Asked on 10 Mar 2020

How do I purchase stocks using my CPF OA? My UOB seems to be linked with my CPF (can see investible amount) but I'm not sure how to purchase stocks, can someone guide me please?

How do I purchase stocks using my CPF OA?

My UOB seems to be linked with my CPF (can see investible amount) but i'm not sure. Hope to get quick answer here, sorry if it's a repeat question

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Lim Qin Da
Lim Qin Da
Top Contributor

Top Contributor (Jul)

Level 6. Master
Updated on 12 Mar 2020

Hi M.L., you may find the information below useful for you!

Eligibility to invest with CPF

  • At least 18 years old and not an undischarged bankrupt

  • Have more than S$20,000 in your OA

Amount that can be invested

To obtain this amount, there are 2 methods to go around doing it.

  1. Obtaining the number from CPF (the easy way)

Login to your CPF account and select 'My Statement'. Under Segment C, you can locate a 'Stocks' segment that shows you the amount you can invest.

  1. Calculations

Assuming that you have $30,000 in your OA,

  • You can invest up to 35% of your investible savings, i.e. $10,500 can be invested

  • The first $20,000 cannot be invested, i.e. $10,000 can be invested

The lower of A and B would be the amount you can invest, i.e. $10,000.

Opening a CPF Investment Account

If you want to invest your CPF OA in shares, you have to open a CPF investment account with UOB, which is an approved CPF investment scheme (CPFIS) agent. Once your CPF investment account is approved, pass the account number to your broker and they will do the link-up for you. If you want to buy shares using your CPF, simply inform your broker before the trade and they will proceed from there. More information about the UOB CPF Investment Account can be found here.

Investing in CPF-approved Shares ONLY

Do note that you can only invest in CPF-approved shares, which can be found here. There are more than 400 of them and they fulfil the following criteria:

  • The company must be incorporated in Singapore

  • The company are listed on the SGX Main Board as primary listing or former SESDAQ shares

  • The shares are traded in Singapore dollars

  • Agent Banks are allowed by the company to appoint all CPF shareholders of the company as proxies to attend and vote at meetings

  • The company must not be on the SGX watch-list

However, CPF-approved shares do not mean that they are safe to invest! Being careful on when and how to invest is still very important.

Conclusion

Do be careful when you invest with your CPF! Over the last 10 years, less than 20% of those who use their CPF to invest in shares made returns larger than the OA’s guaranteed returns of 2.5%, and 45% made a loss. Choosing the right company and investing at the right time is very important, and I highly recommend that you invest when you are sure that there is a good opportunity for higher returns.​​​

1 comment

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Ashiq Mohamed
Ashiq Mohamed

13 Apr 2020

Valuable inputs, thank you.