Read? New CPFIS fee caps should mean better investment outcomes
Over $27B in 2008 and under $17B in Q2 2020.
A drastic drop of more than 37% despites CPF member balances have grown significantly!
Probably; more and more CPFIS investors learnt through hard investing lesson. It is NOT easy to beat 2.5% compounding interests over market cycles!
Read? What you will never hear at any investment seminars?
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Of my 3 accounts, SRS, cash and CPF.
ReplyDeleteCPF seems to be doing the best because it is only fired after cash, after SRS
Let see we can have more data points on cash, SRS and CPFIs here.
DeleteReasons for drastic drop of more than 37% in CPFIS
ReplyDelete- Poor investment performance
- CHEAPER AND BETTER alternatives such as index funds/ETFs
- Easier access to unbiased advice on internet such as investment community forums, objective financial blogs with no snake-oil agenda. One example is https://createwealth8888.blogspot.com :)
Hi Uncle8888,
ReplyDeleteNot easy to beat 2.5% CPF rate as stomach is weaker than the brain.
Take the following possible CPFIS fund as an example. Even if suay suay invested at the peak in Oct 2007, the CAGR till today is still 6%. Over the last 10 years the CAGR is 10%.
It looks easy on hindsight, but many would have sold & bailed on many occasions e.g. GFC, 2012 Euro Crisis, 2015 China/oil crash, 2018 Trade war, 2020 Covid etc.
My wife & I are invested in a similar fund. Unfortunately the returns are slightly less spectacular but also less volatile. Our stomachs cannot tahan!
Hmm .. not easy to be investors as need both strong brain and stomach.
DeleteWe have never used our CPF money for shares investment. So, cannot comment on the CPFIS. However, we used almost all our OA money for property investment until at one point, I had only $7,000 left in my OA when I was in my 40s.
ReplyDeleteNow, closer to 60, we have since returned all the money used for property back to our CPF OA. At this point in our life (strolling down the mountain), we are happy just to receive the OA 2.5% interest and SA 4% interest from Ah Gong yearly. That adds up to a tidy sum of $55,000 last year combined for the misses and me - no Mr Market risk. Looking forward to this year's post Christmas gift from Ah Gong!
I took the opportunity use CPF OA to accumulate bank stocks since March Covid19 for a longer term of 10 years.
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ReplyDelete