EPF Member's Investment Scheme

Mingguan Malaysia reports that approximately 80% of EPF contributors who invest their EPF savings in unit trusts loses money.

KUALA LUMPUR 5 Ogos – Kira-kira RM600 juta wang milik pencarum Kumpulan Wang Simpanan Pekerja (KWSP) yang dilaburkan ke dalam unit amanah (unit trust) mengalami kerugian.

Mingguan Malaysia difahamkan menerusi satu sumber kesatuan sekerja, kerugian itu melibatkan kira-kira 80 peratus pencarum yang membuat pelaburan. Full report here.

Now, the unions and consumer associations want the government to intervene and abolish this EPF Member's Investment Scheme.

KUALA LUMPUR 6 Ogos – Kesatuan-kesatuan sekerja dan persatuan pengguna hari ini menggesa kerajaan dan Kumpulan Wang Simpanan Pekerja (KWSP)menghentikan segera skim pengeluaran caruman untuk dilaburkan ke dalam unit amanah bagi kerugian yang lebih besar kepada pencarum.

I am no expert in unit trust but I do know enough to know that I should stay away from this market. So to argue on whether or not the government should abolish it, I will leave it to the experts but yes, the government should relook the mechanism of this scheme. Because right now, the only sure group who benefits are the agencies.

A couple of years back, a similar headline also hit the Singapore press. I cannot seem to be able find the news in my archives but I do recall that a majprity of the pensioners ended up with less money than what they started off with in a similar scheme.