If you have not already knew, this year our government has announced that Malaysian can conditionally withdraw part of our EPF savings under Account I for investment. However, you can only transfer these savings to your choice of investment fund under the funds that are appointed by the Ministry of Finance. With this in mind, the risks and benefits of investing in the particular investment fund will directly be borned by you, no longer by KWSP. Therefore it is very important for you to be selective in choosing a right investment fund if you wish to minimize the risks and see higher returns during the investment process.
Investment conditions:1. Minimum amount = RM10002. Amount that you can invest = 20% of (total in Account 1 - Basic savings)3. Withdrawals can be made in every 3 months as long as your account met those conditions above.
*Basic savings differs according to your age
Example of calculations:
Age: 27Amount available in Account 1 = RM50000Amount that can be invested = 20% x (50000 - 12000)= 20% x 38000= 7600So the amount that you can invest is RM7600.
Please also bear in mind that with this investment, all gains and loses will go into your EPF account. It means that if you earn RM1000, you will not be able to withdraw it for personal use. If you would like to stop investing on a particular fund that you have invested with your EPF funds, the gains or loses will be credited back to your EPF account which you can only use it during retirement / after age 55.
The initial service charge is now capped at 3% for EPF investment rather than 5% to 7% for the normal charge. Invest while you can because you are not going to take the risk later in life.
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