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How to make your CPF grow?

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  • How to make your CPF grow?

    My friend's a stay at home mum and her cpf is not growing.She's wondering how to make her acc grow by using the money in the cpf.Is she supposed to use the OA/SA?Any good and stable investments to recommend?

    Thanks for sharing

  • #2
    Sherry : Maybe can consider investing the money? There are a number of approved funds by CPF, think the best way is to talk to the bank, they will guide you through
    My hb just made some profit with 70% gain over about 1 year+ period The one he invested was the Emerging Market Imagine if you have 10,000 bucks, you get back 17,000 in 1 year's time, it's not a lot of money but the gain is considered very good already for stocks There was a better time when hb made more than 100% gain in a year's time!
    But bear in mind that you will not be allowed to draw out your capital gains from CPF, they have to remain in your CPF account.

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    • #3
      China funds are going strong now, you may also consider.

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      • #4
        Hi chooz, may I ask which emerging markets fund ur hb invest in?
        I invested mine in Prudential emerging markets fund but it only grows from 2.4k to 2.74k after more than a year! The reason is because of the very sharp dip in May.

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        • #5
          Hi jazel,
          My hb's investment funds are handled by the teams in HSBC & Aberdeen I think first of all, what you should do is to engage a good investment team As far as we know, HSBC has one of the best teams among the banks in S'pore. Prudential I would say is more pro in the Insurance field. You have to know that, even given the SAME market to invest in, 2 different groups of ppl will come out with different gains or losses. It all boils down to how good they are in investing Like for eg, hb is investing with both HSBC & Aberdeen in the same emerging market segment but HSBC is the one always giving him a better gain

          The dip in May was caused by interest rates by the FEDS, but hb held on to it because the fundamentals of economy was still very strong (for the emerging market). True enough it came right back up by June or July and all the way surpassed the point it dropped By the way, care to share when was your entry and exit points? As in when did you go into the market and when did you sell?

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          • #6
            jazel: That was still a good 20% growth, I think you have already made a good gain.

            Of course a 70% gain is very good, but it is not guaranteed that it will repeat the same performance. And this will be the same for any other fund, regardless of company.

            The best is of course to know what you are investing in, the fundamentals, the investor that is handling it and so on and so forth.

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            • #7
              Chooz: I didn't know that HSBC is that good. Thanks for sharing!! I also invested $2k (still a fresh grad in the society, hence little CPF $) in HSBC India funds. The money break even after just 3 months. Quite pleased with it and I invested another $500 in the newly launched emerging markets fund.
              Haven't sold off my Prudential fund yet. Entry was in July 05.

              Hope the investment will keep growing like ur hb's so that I can have more CPF money to buy HDB flat. Haha..

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              • #8
                jazel : Hey, you've also invested with HSBC? :wow: I've just clarified with hb, the 70% gains were actually from his Aberdeen funds, his Indian Funds in HSBC has been doing much better than that, with an average of 100+% gains In fact, HSBC has a very impressive track record, they have achieved a total of a whooping 500% gains in the past 5 years for their Indian Fund (you can request the records from your banker)! It wasn't by fluke, we're not talking about striking toto or 4D here .Sure enough such impressive gains are not always guaranteed, in fact nothing is guranteed in this world, not even our jobs, our healths, our marriages etc. But with such impressive track records, it gives us confidence that such performance may be repeated (unless some unforseen major world disaster happens which no one could have predicted or stopped) It just makes sense that when you want someone to invest your $$ for you, you would seek those with a proven track record. It's as simple as the case of any employer asking to see the resume of a potential job candidate

                Besides CPF money, hb also uses spare cash to do the BRIC investment coz sometimes we also want some "instant reward", hee hee :p Coz the capital gain from CPF cannot be withdrawn ma.h, hee hee ...

                Not many girls as young as you (fresh grad) would have any interest whatsoever in growing their money, it's never too young to start learning about investment . Good luck, stay focus and wish your investments to keep growing

                PS: Always invest only the money you can afford to lose, every investment comes with a risk, just a matter of how much only

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                • #9
                  Hi, I am very interested to invest my CPF too. Is there any other links or salesperson i could find out from? Hope someone can provide me some links! I am so clueless... TIA!

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                  • #10
                    girlady : Hmm, I'm not sure about any link as my hb is the one doing all the investment, I'm as clueless as you Think you need to find a bank to do your investment first, talk to them and I'm sure they will be able to advice and guide you on how to invest your CPF money. Otherwise, maybe can check out the CPF site for investment guides?

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                    • #11
                      Originally posted by girlady
                      Hi, I am very interested to invest my CPF too. Is there any other links or salesperson i could find out from? Hope someone can provide me some links! I am so clueless... TIA!
                      Basically just need to know how much time you're able to wait for your investments as the real market will fluctuate. And by how many years time you need to use your cpf like to buy flat, from there can plan your way.. If let's say you need to buy flat very soon, maybe can consider investing using your SA instead of OA. Either can speak to your own agent or just walk in the banks.

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                      • #12
                        just wondering:

                        (i) what other investment vehicles are available to CPF funds?

                        (ii) is there some sort of limited downside built into these investments, considering that it's CPF funds that are being used?

                        TIA!
                        happybean
                        Cozy Star
                        Last edited by happybean; 30-12-2006, 12:30 AM.

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                        • #13
                          Hi Sherry,

                          Depending on how much she has, she might want to consider transferring a portion to her special accounts, which earns her about 4% interest rate. Once you factor in the effect of compound interest, you get more than 1/2 of what you would get in the ordinary account. (there is a calculator at the CPF website, you can check it out)This is an almost risk free, and free way get more return. Of course she might want to consider whether she will need the $$ to buy flat etc etc. Once into special accounts, you want take it out for these uses anymore.

                          Doing investments will give you potentially more returns, but management fees is something to consider! I did not invest a lot, and the investment fees erode a big portion of my returns.

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                          • #14
                            Read from the straits times today that CPF funds can be used to buy T-bills which gives an interest of 3%. Very safe, risk-free option for conservative investors.

                            Chooz: Ur hb's investment track record is quite impressive!
                            Can share which specific funds is he holding now?
                            And what's BRIC?? "Instant" rewards?

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                            • #15
                              I'm currently in a fund management company. T bills at 3% is such a low return.

                              Returns we see for clients are as high as 7 to 13%.

                              Full utilisation of the OA and SA funds as well. I find that returns like that is hard to top. But the key to it is astute management.

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