Investment in Bursa and oversea market ? Our EPF accounts.
There are many argument that where and who should be decision maker of our EPF money?
Currently they are some option and restriction for our money in EPF to be invested.
1. Only member who reach minimum balance of RM 50 k to be eligible for investment scheme outside normal dividend received. The rules has change to encourage more younger to expose their investment habit. ( for example age 20. then u minimum balance..should be lower amout)
2. only stages by stages. investment over the period of time for investment, and not lump sum investment. 20% of your excess min balance is allow to taken out. and next withraw is another 3 month from the approved for your 1st withrawal.
3 Limited fund to be selected, Only Malaysia fund are eligible in the scheme, those fund with oversea content are not allow to be invest. Purpose is to avoid country risk outside malaysia.
4. Only Unit trust is allowable to invest and not direct to Bursa or equity market. The purpose is same as mention in point 3, risks
In my view, there are excellent moves for flexible minimum balance to encourage youngest in investment. But otherlimitation such as not allow invest in oversea fund or direct to stock counter need to be re consider or re planning.
Globalization will let many Malaysia company with oversea exposure with greater return and other global risk. meaning invest in only local funds will not help us to reduce our risk in globalized. Reversely, may be restrict for Malaysian to get better return with moderate risk. If you compare risk and return for unit trusts market. you will find not necessary is local fund will bring your lower risk or better return. I will find some is worst performance compare to local fund. I will suggest open portion of the investment to oversea fund to spread the country risk.
Can we consider using our EPf money to direct invest in certain : blue chip " counters in Bursa Malaysia. Reports show over the time, certain Blue chip counter will bring better return even though violative markets. Just for example. if you buying a units of "Genting " share 20 year ago. Compare with other Unit trust or Epf dividend. Definetely that will given us better return.
Of course I may said, the EPF board is consider lack of market knowledge of malaysian and low finance education...... but over the year, I find those restriction should be open stages by stages. In view of the size of EPF now, there are better for EPF to let unit holder to learn how malaysian can be learn and manage our EPF money.
There are report show that many malaysian are utilised their EPF after 3 year of retirement. Does this show malaysian need to be more educated in finance or money planning. EPF will only help us manage money up to 55 year old. Does mean more open for investment will bring more risks to statesholder? We should learn lesson from US or some reason for burning their retirement fund in financial crisis. but does regurlation or control will let us have more knowledge?
Currently they are some option and restriction for our money in EPF to be invested.
1. Only member who reach minimum balance of RM 50 k to be eligible for investment scheme outside normal dividend received. The rules has change to encourage more younger to expose their investment habit. ( for example age 20. then u minimum balance..should be lower amout)
2. only stages by stages. investment over the period of time for investment, and not lump sum investment. 20% of your excess min balance is allow to taken out. and next withraw is another 3 month from the approved for your 1st withrawal.
3 Limited fund to be selected, Only Malaysia fund are eligible in the scheme, those fund with oversea content are not allow to be invest. Purpose is to avoid country risk outside malaysia.
4. Only Unit trust is allowable to invest and not direct to Bursa or equity market. The purpose is same as mention in point 3, risks
In my view, there are excellent moves for flexible minimum balance to encourage youngest in investment. But otherlimitation such as not allow invest in oversea fund or direct to stock counter need to be re consider or re planning.
Globalization will let many Malaysia company with oversea exposure with greater return and other global risk. meaning invest in only local funds will not help us to reduce our risk in globalized. Reversely, may be restrict for Malaysian to get better return with moderate risk. If you compare risk and return for unit trusts market. you will find not necessary is local fund will bring your lower risk or better return. I will find some is worst performance compare to local fund. I will suggest open portion of the investment to oversea fund to spread the country risk.
Can we consider using our EPf money to direct invest in certain : blue chip " counters in Bursa Malaysia. Reports show over the time, certain Blue chip counter will bring better return even though violative markets. Just for example. if you buying a units of "Genting " share 20 year ago. Compare with other Unit trust or Epf dividend. Definetely that will given us better return.
Of course I may said, the EPF board is consider lack of market knowledge of malaysian and low finance education...... but over the year, I find those restriction should be open stages by stages. In view of the size of EPF now, there are better for EPF to let unit holder to learn how malaysian can be learn and manage our EPF money.
There are report show that many malaysian are utilised their EPF after 3 year of retirement. Does this show malaysian need to be more educated in finance or money planning. EPF will only help us manage money up to 55 year old. Does mean more open for investment will bring more risks to statesholder? We should learn lesson from US or some reason for burning their retirement fund in financial crisis. but does regurlation or control will let us have more knowledge?
posted by leeya at
9:53 AM
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