What unit trust to invest in?

Ha! Ha!
Do you all know when CPFIS first started, there was this rule that when you sold your shares and return your proceeds to OA, you could withdraw whatever profit you made but you didn't have to top up if you made a loss. Shiok were those days of wine and roses. That was if your trade was profitable.

Now it is really so complicated just by reading all the posts about using CPF's OA to invest. And your profits stay in OA until 55?

(23-01-2014, 05:50 PM)smallcaps Wrote: I'm not so sure about this but assuming the total market value of the stocks held already far exceeds the 35% limit, wouldn't selling and buying back reduce the total market value of the stocks held?

You are so right! That's why I always say that CPF investment rules are for losers. Folks who make money are always penalised......

What if you got a counter which the coy has gone burst? That part of the cost of investment stay forever? The current method is so flawed! Really is high time CPF review their method.

By the way, do I earn that additional 1% interest on $60k or only $20k of my OA. Seems to me the latter case according to CPF website. So are SA and Medisave also earning that extra 1% on $20K each?

http://mycpf.cpf.gov.sg/Members/Gen-Info...-Rates.htm
Additional Interest of 1%
As part of our efforts to enhance CPF members’ retirement savings, an additional 1% interest will continue to be paid on the first $60,000 of a member’s combined balances, with up to $20,000 from the Ordinary Account (OA). The additional interest received on the OA will go into the member’s SA or RA to enhance his retirement savings. If a member is above 55 years old and participates in the CPF LIFE scheme, the additional 1% interest will still be earned on his combined balances, which includes the savings used for CPF LIFE.

Maybe that is y Singaporean just use
Cpf to buy ppty & get immediate rent income
Instead of waiting till 55 to get their $$$

(23-01-2014, 04:51 PM)opmi Wrote: CPF dont care about corporate actions. They live in a world of their own.

Actually they do adjust for some corporate actions. For example, when Keppel Corp did a stock spilt ages ago, they adjust down the cost price of my holdings down.

For bonus issues, they also adjust the cost price downwards. It is the inconsistency that puzzles me.

(23-01-2014, 07:20 PM)ghchua Wrote:

(23-01-2014, 04:51 PM)opmi Wrote: CPF dont care about corporate actions. They live in a world of their own.

Actually they do adjust for some corporate actions. For example, when Keppel Corp did a stock spilt ages ago, they adjust down the cost price of my holdings down.

For bonus issues, they also adjust the cost price downwards. It is the inconsistency that puzzles me.

I think it is NOT due to "they adjusting" the cost price, but becoz bonus or split, resulted in you getting more shares,
so post-split, or post bonus, (same historical purchase cost amt) / more shares => results in lower "Unit Cost" for your enlarged shares

=> if its a bonus wrts, or like recent F&N dis-of-FCL shrs, that resulted in two separate line-items, "Unit Cost" for your share will still be the same
=> but the wrts line, will show zero price.

but if its a big div payout, maybe even a CAR
my guess is upon X-all, no change to your shares "Unit Cost"...coz => your no. of shares never changed

Anyone with F&N in CPF cum-DIS-FrasersCpt shrs:
can confirm that "Unit Cost" for the F&N shrs remain the same not adjusted,
while your new "Unit Cost" for the FrasersCpt shrs is ZERO...

(23-01-2014, 07:56 PM)Vseeker Wrote: Anyone with F&N in CPF cum-DIS-FrasersCpt shrs:
can confirm that your holding costs for the F&N shrs remain the same,
and the FrasersCpt shrs should show zero price ??

I don't have F&N in my CPF Investment Account. But from my experience with Keppel Corp, those K-Green and K-REIT units that had been given out had a total cost and unit cost of zero.

2nd Chance bonus warrants also has total cost and unit cost of zero. 2nd Chance shares total cost remains the same.

(23-01-2014, 08:03 PM)ghchua Wrote:

(23-01-2014, 07:56 PM)Vseeker Wrote: Anyone with F&N in CPF cum-DIS-FrasersCpt shrs:
can confirm that your holding costs for the F&N shrs remain the same,
and the FrasersCpt shrs should show zero price ??

I don't have F&N in my CPF Investment Account. But from my experience with Keppel Corp, those K-Green and K-REIT units that had been given out had a total cost and unit cost of zero.

2nd Chance bonus warrants also has total cost and unit cost of zero. 2nd Chance shares total cost remains the same.

thks for confirming above.
so look to me like on a per counter basis,
CPF kept "Purchase Cost Amts" (A) and "No of shrs or units" (B) , and the "Unit Cost" is simply derived by computing A/B.

whenever you buy or sell part of your holdings in a particular stock, the values of (A) and (B) get increased or deducted accordingly,
and new "Unit Costs" is simply the new values of (A) / (B)

for other corporate actions like CAR, SpDiv, normal div... the cash payout is probably NOT adjusted,
but if you go for script-div => the increased in shares is at zero cost => so (A) / (B) will still result in a lower "unit cost"

==> BUT personally I avoid script div resulting in odd lots in CPF Inv A/c, even if I'm left only 1 share of XYZ, there is still a Qtrly servicing cost - charged on a per counter basis,

also note that CPF trans charges is lower if you buy 1 lot of a $10 share, compared to buying 20 lots of a $0.50 share.

(23-01-2014, 06:05 PM)Temperament Wrote: Ha! Ha!
Do you all know when CPFIS first started, there was this rule that when you sold your shares and return your proceeds to OA, you could withdraw whatever profit you made but you didn't have to top up if you made a loss. Shiok were those days of wine and roses. That was if your trade was profitable.

Now it is really so complicated just by reading all the posts about using CPF's OA to invest. And your profits stay in OA until 55?

Yes, those were the days !!
iirc, there was also a brief period when you can sell your npRs (from CPF holdings) and wrts from RTs or Bonus and pocket the cashs !! but they plug the hole soon after...

however each individual circumstances vary...for some, they are better off to leave as much, and for as long as possible, in their CPF - to protect them from themselves

CPF - ©hina (P)ros (F)und for some.
Paternalistic or not. Need some safeguards against
'strike lottery' mentality.