Saturday, November 1, 2008

EPF Investment Options : ASW

Let's discuss investing from your EPF savings, how, how much can you withdraw and the options, including Capital Guranteed investment options.

Investment from Account 1 - Withdrawing for investment, how much?

The Employees Provident Fund (EPF) aka Kumpulan Simpanan Wang Pekerja (KWSP) is what it stands for.

It is commonly known to many that you can withdraw stipulated amounts from your EPF Account 1 for investment. The typical or would I say options for investment have been Public Mutual and now CIMB. But most of this offer investment with a certain risk, ie no capital guarantee.

Later on I will talk about an investment option that is RM1 for RM1. I am not sure how the capital guarantee is stipulated though, so please read thru the prospectus clearly.

First let's understand what you can withdraw and how much. Go to the EPF / KWSP website, choose your preferred language, Bahasa Melayu or English.
Look for the Pull Down Kalkulator or Calculator, then click on the Pelaburan or Investment Tab.
You should now have a webpage with the EPF Investment Calculator

This calculator should answer your questions on allowable amount of withdrawal. If you want to understand more on the method of calculation, you can go to the EPF Press Release on the details by clicking here.
Basically you can withdraw X amount , which equals 20 percent of your total savings in EPF Acc 1 minus a required minimum savings defined by age.

EPF / KWSP Investment Options
Ok, so now you know you can withdraw an X amount of Ringgit Malaysia. What are the investment options in EPF. In other words, where can you invest your EPF savings to? There has been much publicity for Public Mutual, and now CIMB. Alas, if you started slightly before the current recession and market downfall, probably you're making a loss. So should you continue to Dollar Cost Average (DCA)? Read here on some thoughts about DCA.

Permodalan Nasional Berhand (PNB) / Amanah Saham Nasional Berhad (ASNB) does offer some alternatives. The reason this funds are not that 'famous' is probably coz the agents work for PNB, unlike other trust fund agents earn on commission basic, so .... Among others PNB offers ASD and ASW.

ASW (Amanah Saham Wawasan) is open to all, however the non-Bumi units have all been take up. The reason for the high demand of this fund is it is fixed at RM1.00 for both buy and sell price. In other words, could this be said as capital guaranteed? However I believe they do charge management fees etc from the profit made, so what happens if they loose money?
Since 1999 till 2007, they have recorded an average of 7.8% dividend payouts. (this would end up higher if you count for compounded interest rate).

So for your hard earned EPF money, this would be an option to consider, especially if you're a safe player, and taking into consideration the current market situation.

If you're interested, you can get in touch with any ASNB offices. The Penang office is located as below. You can also call them and request if their agent can come meet up with you.

No. 2777, Jalan Chain Ferry,
Taman Inderawasih,
13600 Perai
Pulau Pinang.
Tel : 04-3994381 / 3994375
Fax : 04-3994404

This blog entry answers the below questions
  1. How do I invest from my EPF / KWSP account?
  2. How much can I invest from my EPF acc?
  3. What options do I have for EPF investment options?
  4. Is there a safe or risk free investment option for my EPF savings?
Happy investing!


forex-tiwisue said...

There is requirement for people to withdraw money from EPF to invest mutual fund. However, if our saving in EPF is enough for investment, today the "golden chance" to invest. Buy the units with low price and wait for the return.


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