HDB Loan or Investment

[ghchua]

Hi ghchua,

Thanks for your recommendation. Yes, I agree that low-beta stocks are not completely risk-free. Nonetheless, I've not bought any bond funds using CPF-IS before... how do I go about to purchase them? Are these bond funds easily liquidated?

An example of a short term duration bond fund that can be used for CPF OA investment is NIKKO AM SHENTON SHORTTERM BOND(S$). The investment objective of the fund is as follows:
The fund seeks preservation of capital, liquidity and consistent with these objectives, to outperform the SIBOR by investing in a diversified portfolio of good quality, short-term bonds and money market instruments.

Bond funds are easily liquidated as they have daily pricing. If you open an online account with portals like Fundsupermart, POEMS etc, the sales charge for short term bond fund is normally 0%. There is no redemption charge as well. The charges you have to pay is the CPF agent bank charges for buying/selling. Management fee for the fund had been factored in the unit trust pricing.