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. Hope to get quick answer here, sorry if it's a repeat question
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.
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.
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.
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.