WHAT CAN I INVEST IN?
Choose from different CPFIS instruments: shares and loan stocks, unit trusts, government bonds, statutory board bonds, bank deposits, fund management accounts, endowment insurance policies, investment-linked insurance policies (ILPs), exchange traded funds (ETFs) and gold. These are offered by vendors like CPF Fixed Deposit Banks (DBS, Maybank, OCBC, UOB), insurance companies, fund management companies and other banks.
What you can invest in also depends on whether you’re using your OA or SA monies. Investing your OA offers more options, although there are certain guidelines to adhere to. For instance, only up to 10 per cent of your investible savings (your total OA balance plus the amount of CPF you’ve used up for
investment and education) can be invested in gold ETFs and gold. You can also use your CPFIS-OA funds to apply for shares, property funds or bonds offered during an Initial Public Offering (IPO).
Do note: You can use money from your OA only for investments under the CPFIS-OA scheme, and your SA only for investments under CPFIS-SA. You can’t combine them to invest in one product.
But if you’re under 55, you can transfer funds from your OA to your SA and invest via your CPFIS-SA. Do think twice though as it’s irreversible; you can’t shift the money back to your OA in the future to pay for housing or education needs. Also, the total savings in the SA, including the amount withdrawn under CPFIS-SA, must not exceed the CPF Minimum Sum after the transfer. This is currently set at $155,000 but will be raised to $161,000 in July 2015.