What investment should I buy using CPF OA acc? - Seedly
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Anonymous

Asked on 08 Nov 2019

What investment should I buy using CPF OA acc?

Looking at global exposure. Any ETF/funds that track us market with decent returns?

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Hi anon,

Due to the limited range of ETFs, you can consider UTs instead for tracking US market.

A number of funds track the US market:

  1. Fidelity Funds – America Fund SR-ACC-SGD

  2. Franklin Templeton Investment Funds – Franklin U.S. Opportunities Fund AS (acc)SGD

  3. Natixis International Funds (LUX) I - Harris Associates U.S. Equity Fund H-P/A (SGD)

amongst others.

Alternatively, consider global funds since the US stock market is almost 50% of the world's market cap.

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Elijah Lee
Elijah Lee

10 Nov 2019

Hi QP, management fees are already priced in to the UT NAV and it's not an extra charge you have to 'pay' per se. Sales charges can be 0% even now, so effectively your transactional costs are zero on a UT. You can open a POEMS trading account to purchase if you wish.
Elijah Lee
Elijah Lee

10 Nov 2019

If you disregarding the 1.5% sales charge that you will be slapped with on other platforms, 1.3% management charge on an equity fund is around the right range.

To achieve global exposure using CPFIS-OA, you'll need to invest in a portfolio of Unit Trusts.

If you decide to work with an advisor, the maximum annual advisory fee we can charge is just 0.4% of your portfolio.

From the shortlisted funds available on the platform, many of them have been performing decently well, outperforming their benchmarks regularly. In fact, it is possible to DIY if you know how to read and study funds using a platform like FundSuperMart.

But if you don't want to DIY, hiring an advisor is cost effective.

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Question Poster

09 Nov 2019

Which advisor charge 0.4%?
Hariz Arthur Maloy
Hariz Arthur Maloy

09 Nov 2019

All. That's the new maximum advisory fee chargeable for CPFIS monies.
Lean Sing Ding
Lean Sing Ding, Client Experience Lead at Endowus
Level 4. Prodigy
Updated on 22 Nov 2019

Hi Anon,

Great question!

At Endowus - we curate globally diversified portfolios that CPF members can access using their CPF-OA and specifically to your question - CPF members are also able to access Lion Infinity (Vanguard) US 500 Stock Index Fund throught the Endowus Portfolios. This is exclusive to Endowus.

Do visit us at www.endowus.com or PM me should you require further information.

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Gabriel Tham
Gabriel Tham, Tag Team Member at Kenichi Tag Team
Level 9. God of Wisdom
Answered on 09 Nov 2019

Unfortunately, for CPF OA investment, the ETFs are very limited. There are however alot of unit trusts. You should first consider investing your cash before touching CPF.

If your cash investment generates a high return in excess above the 2.5% then you know you have the ability to invest CPF.

Otherwise, the 2.5% guaranteed is very good. Even better if you transfer all to SA for guaranteed 4% if you do not need to use CPF OA.

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Question Poster

09 Nov 2019

Yes. I have invested my cash. Its generating positive returns. I have research about cpfis and there only 4 etf all local based.. funds with overseas exposure charge high commission.. look like the only option is to buy banks/reits for dividend..
Frankie Rappaport
Frankie Rappaport
Top Contributor

Top Contributor (Jul)

Level 9. God of Wisdom
Answered on 05 Mar 2020

Look for a company/brokerage, that allows You to invest in SPDR (SP500 ETF)

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W
William
Level 4. Prodigy
Answered on 21 Nov 2019

Can use 30% of OA to buy blue chips in SGX.

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