EPF (KWSP) has announced that it is going to allow back 5 unit trust funds which previously all members are forbidden to withdraw to invest in unit trust schemes. But now it is a different story!
This come as good news especially when EPF itself has announced that they are going to increase their global investment exposure to 25% going forward.
So, i see this as an opportunity to invest some portion of your EPF savings into any one of the 5 funds managed by Public Mutual Bhd. Kindly note that the extra 5 new funds approved by EPF will only take effect from April 1, 2016. The funds are;
- Public Equity Fund
- Public Growth Fund
- Public Balanced Fund
- Public Select Bond Fund
- Public Islamic Income Fund
Some of you may be left out with little cash money to invest but fear no more. You may now (subject to qualification) use your EPF savings to increase your retirement fund.
I guess the main reason EPF is allowing unit holders to withdraw part of their money, is may be due to that it foresees some difficult times in years to come in maintaining the average fair return delivered as so far. It all has to do with their very own investment policy statement that forbids them to a bigger equity exposure.
You can only withdraw 20% of your qualifying amount from account 1.
What is qualifying amount?
Qualifying amount is defined as any balance amount in account 1 in excess of base amount.
The base amount is fixed by the EPF body.
Example:
Suppose you have RM 150000 in account 1, and your age of next birthday is 36.
Based on your age (36) let's assume the base amount that is fixed by the EPF body is RM 60000 (example only).
Therefore, RM 150000 minus RM 60000 = RM 90000.
From here you need to multiply RM 90000 with 20% ( 20 % is fixed by the EPF body)
Finally, the amount that you are eligible to withdraw for unit trust investment is RM 18000 only.
Kindly note that that as per EPF-MIS rule, money from EPF for unit trust investment can only be withdrawn in every 3 months time, not every month!
