EPF: 744,139 members invested RM29.48bil in unit trust funds


  • Business
  • Monday, 17 Mar 2014

According to the Employees Provident Fund, 744,139 of its contributors invested a total of RM29.48bil in approved Fund Management Institutions (FMI) and unit trust funds as at the end of 2013. The EFP says withdrawing funds to invest in approved FMIs is one way to grow retirement savings, but cautions members to first study the chosen fund and get professional advice.

KUALA LUMPUR: A total of 744,139 members of the Employees Provident Fund (EPF) had invested RM29.48bil in approved Fund Management Institutions (FMI) and unit trust funds as at end-2013.

EPF deputy CEO (Investment) Mohamad Nasir Ab Latif said on Monday the EPF Members Investment Scheme (EPF-MIS) was an opportunity for members to grow their retirement savings.

However, before deciding to participate in the scheme, he advised members to study the prospectus of the chosen fund thoroughly, because of the underlying risks.

"Members also need to understand the objective of the scheme and seek advice from qualified advisers or financial planners," he said.

The EPF had in June 2013 introduced a revised guideline to enhance its supervision on every appointed unit trust funds under the FMI to safeguard members' retirement savings. 

Mohamad Nasir pointed out this was to ensure funds were of high quality and possessed a consistent returns track record.

"We stress that although the EPF approves the funds to be offered under the EPF-MIS, this does not constitute as a recommendation nor assurance on their performance.

"Members always have the option of maintaining their retirement savings with the EPF, which has been able to provide stable returns every year such as the 6.35% dividend announced for 2013," he said.

The EPF also announced the revised list of FMI and unit trust funds for 2014/2015 for the EPF-MIS. The revised list will take effect on April 1, 2014 until March 31, 2015.

Mohamad Nasir said for the period of 2014/2015, there were 224 unit trust funds from 24 FMIs qualified to be offered under the EPF-MIS, compared with 210 from 25 FMIs as at Dec 31, 2013.

Under the EPF-MIS, members can transfer, on a quarterly basis, not more than20% of the total savings from Account 1 in excess of their respective basic savings.

The revised basic savings quantum, which took effect on Jan 1, 2014, refers to an amount of savings set according to age to ensure members have at least RM196,800 upon reaching the age of 55.

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