What unit trust to invest in?

[funman168]

Hmm, I always tot that if u buy sti etf it will be from ur 35% stock quota
of ur CPF OA.
That is y I rather use the 35% cpf OA stk quota
to get huge gain on speculative counters.

Thanks, the prob I have is the 65% of OA that has to buy only selected unit trust. ETF does not fall under it.

Yes you can buy sti ETF

You need to pass the CAR tests to transact ETFs

[funman168]

My heavy weight cpf speculative was actually yoma.
Got almost 10x return

Hi egghead, bcos most of my stks are speculative.
Getting busy nowadays, so decided to liquidate all of it

Interesting that CPF OA allows speculative stocks to be invested. I am keen to find out what are the stocks that is speculative.

Blumont
Asiaons

[arriyana]

You could also try MSCI futures. While they are leveraged product, they also have fairly low volatility. Great way to take on leverage to improve gains.

[GPD]

2 cents :
If you are a high net worth individual, probably you may consider to invest in funds managed by d.o.g. OR funds managed by Mr. Yeo (Yeoman Capital Management) or funds managed by Eric Kong (Aggregate Asset Management) OR other funds, not just Unit Trust.

CPF savings can only used to invest in CPF approved funds.
The 65% part of the OA fund is the most difficult to invest due to the imposed limitations.

yes. If you sell 500k of stock, it does not mean the new stock limit is $500k.

probably need to email CPF to recalculate the stock limit if cannot wait until 10th of each month.

A question.
Assuming this buddy has $140k to start with. 35% of that $140k (~$50k) is investible in stocks. He return $500k into his OA so total becomes $590k (140-50+500). Now 35% of that $590k is about $200k.

So is his new investible amount in stock now $500K or $200K?

Another question.
Does all the STI ETF tracks STI? If so what are the differences between them beside fees? Also do you only long STI ETF if you feels STI can go up?

[opmi]

2 cents :
If you are a high net worth individual, probably you may consider to invest in funds managed by d.o.g. OR funds managed by Mr. Yeo (Yeoman Capital Management) or funds managed by Eric Kong (Aggregate Asset Management) OR other funds, not just Unit Trust.

CPF savings can only used to invest in CPF approved funds.
The 65% part of the OA fund is the most difficult to invest due to the imposed limitations.

yes. If you sell 500k of stock, it does not mean the new stock limit is $500k.

probably need to email CPF to recalculate the stock limit if cannot wait until 10th of each month.

A question.
Assuming this buddy has $140k to start with. 35% of that $140k (~$50k) is investible in stocks. He return $500k into his OA so total becomes $590k (140-50+500). Now 35% of that $590k is about $200k.

So is his new investible amount in stock now $500K or $200K?

For sure, the CPFIS stock limit wont be $500k. Likely it will be $200k. I usually just login to CPF website to see stock limit AFTER the sales proceeds in CPFIA/CPFOA. CPF provide 2 sets of CPFIS stock limit

(1) Stock Limit based on CPF-OA at beginning of the latest month
(2) Stock Limit based on CPF-OA as at current balance.

If (2) > (1), then email CPF to recalculate the stock limit so that you can use it within 2-3 days. No need to wait for monthly recalculation.

[HitandRun]

For sure, the CPFIS stock limit wont be $500k. Likely it will be $200k. I usually just login to CPF website to see stock limit AFTER the sales proceeds in CPFIA/CPFOA. CPF provide 2 sets of CPFIS stock limit

(1) Stock Limit based on CPF-OA at beginning of the latest month
(2) Stock Limit based on CPF-OA as at current balance.

If (2) > (1), then email CPF to recalculate the stock limit so that you can use it within 2-3 days. No need to wait for monthly recalculation.

Opmi-san

Need to ask you a couple of things.

1. How is it possible that (2)>(1)?
2. My previous experience was that I gotta sell ALL my stocks before month end, and wait for CPF to recompute the balance available for re-investment on the 10th of the following month. Do you mean that currently, CPF has this added service to shorten this process? If so, I would be grateful if you could share the email address.

[felixleong]

Thanks, the prob I have is the 65% of OA that has to buy only selected unit trust.
ETF does not fall under it.

how about just buying the STI ETF?

http://www.spdrs.com.sg/etf/fund/fund_detail_STTF.html#

passive and lower cost

http://mycpf.cpf.gov.sg/NR/rdonlyres/DCD...rCPFIS.pdf

ETF and unit trust under same category

I generally prefer ETF over unit trust because of the lower management fees
example sti etf is only 0.30%, where as for unit trust I may need to pay 1-3% which is a lot to me

[funman168]

Thanks felixleong for highlighting my misperception.
Do u happen to know if SA can be used to buy sti eft ?
Thanks!

Thanks, the prob I have is the 65% of OA that has to buy only selected unit trust.
ETF does not fall under it.

how about just buying the STI ETF?

http://www.spdrs.com.sg/etf/fund/fund_detail_STTF.html#

passive and lower cost

http://mycpf.cpf.gov.sg/NR/rdonlyres/DCD...rCPFIS.pdf

ETF and unit trust under same category

I generally prefer ETF over unit trust because of the lower management fees
example sti etf is only 0.30%, where as for unit trust I may need to pay 1-3% which is a lot to me

[felixleong]

you are welcomed.
for SA yes, you can buy the sti etf


http://mycpf.cpf.gov.sg/NR/rdonlyres/171.../0/etf.pdf

Thanks felixleong for highlighting my misperception.
Do u happen to know if SA can be used to buy sti eft ?
Thanks!

Thanks, the prob I have is the 65% of OA that has to buy only selected unit trust.
ETF does not fall under it.

how about just buying the STI ETF?

http://www.spdrs.com.sg/etf/fund/fund_detail_STTF.html#

passive and lower cost

http://mycpf.cpf.gov.sg/NR/rdonlyres/DCD...rCPFIS.pdf

ETF and unit trust under same category

I generally prefer ETF over unit trust because of the lower management fees
example sti etf is only 0.30%, where as for unit trust I may need to pay 1-3% which is a lot to me

[opmi]

For sure, the CPFIS stock limit wont be $500k. Likely it will be $200k. I usually just login to CPF website to see stock limit AFTER the sales proceeds in CPFIA/CPFOA. CPF provide 2 sets of CPFIS stock limit

(1) Stock Limit based on CPF-OA at beginning of the latest month
(2) Stock Limit based on CPF-OA as at current balance.

If (2) > (1), then email CPF to recalculate the stock limit so that you can use it within 2-3 days. No need to wait for monthly recalculation.

Opmi-san

Need to ask you a couple of things.

1. How is it possible that (2)>(1)?
2. My previous experience was that I gotta sell ALL my stocks before month end, and wait for CPF to recompute the balance available for re-investment on the 10th of the following month. Do you mean that currently, CPF has this added service to shorten this process? If so, I would be grateful if you could share the email address.

Qn 1. Possible. When sales proceeds comes in after month end. e.g.

Proceeds comes into CPFOA on 11 Jan, whatever date of the new month.

On 10 Jan, Stock Limit (1) is auto calculated based on 31 Dec CPF OA balance.

If take 11 Jan proceeds into account for re-calculation, Stock Limit (2) should be higher. But this can only re-computed by request to CPF.

If you login to CPF website to check stock limit, click link to see actual stock limit calculation.

Qn 2. I used to email to CPF Investment Scheme Dept. Nowadays they dont show the direct email addresses on website. Can email member@cpf.gov.sg with a simple message like "I would like to recompute CPFIS stock limit using the latest CPFOA balance. Thank you" and your particulars. They will get back to you.

Hope the explanation is clear....Nowaday very lazy to write properly...