EPF Member's Investment Scheme - The Reactions
Following Mingguan Malaysia's report that approximately 80% of EPF contributors who invest their EPF savings in unit trusts loses money ...
Via The Star, 8 August 2006; Tighten rules, Government tells EPF - The Government, alarmed over the more than half billion ringgit losses reported from investments in unit trusts involving Employees Provident Fund (EPF) contributors, has directed the EPF to impose stricter conditions on such investments.
Via TheSun, 8 August 2006; Govt wants EPF to tighten withdrawals for unit trust investments - Meanwhile, some EPF-appointed fund management institutions have sought clarification on a news report that 80% of EPF contributors who invested their savings in unit trusts posted losses totalling RM600 million. A few of the fund managers said they doubted the accuracy of the reported loss figure, which was attributed to their inability to invest in profitable ventures. A local fund manager said while investors had to understand the risks involved, a matter that could be an issue was the high cost of investing in unit trusts. "If you invest RM100, RM6.50 is deducted as upfront fees; that itself is expensive. It (the report) does provide a wake-up call to the whole architecture as all the while, the EPF uses agency and the agency tend to sell products with good upfront commissions," she said.
I hope the Government will see this tightening of rules through.
Via The Star, 8 August 2006; Tighten rules, Government tells EPF - The Government, alarmed over the more than half billion ringgit losses reported from investments in unit trusts involving Employees Provident Fund (EPF) contributors, has directed the EPF to impose stricter conditions on such investments.
Via TheSun, 8 August 2006; Govt wants EPF to tighten withdrawals for unit trust investments - Meanwhile, some EPF-appointed fund management institutions have sought clarification on a news report that 80% of EPF contributors who invested their savings in unit trusts posted losses totalling RM600 million. A few of the fund managers said they doubted the accuracy of the reported loss figure, which was attributed to their inability to invest in profitable ventures. A local fund manager said while investors had to understand the risks involved, a matter that could be an issue was the high cost of investing in unit trusts. "If you invest RM100, RM6.50 is deducted as upfront fees; that itself is expensive. It (the report) does provide a wake-up call to the whole architecture as all the while, the EPF uses agency and the agency tend to sell products with good upfront commissions," she said.
I hope the Government will see this tightening of rules through.
posted by raymond at 10:29 AM
1 Comments:
Now they're saying " you must time your investments" and "practise dollar averaging...etc". How to expect the man in the street to understand all this?
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