EMPLOYEES Provident Fund (EPF) members investing under the Members Investment Scheme (EPF MIS) will be entitled to a reduction of upfront fees charged by Fund Management Institutions (FMIs) from May 1, 2020 to April 30, 2021.
The move would enable them to diversify their retirement portfolio at a lower cost. For investments made through agents, the upfront fee will be reduced from a maximum of 3% to 1.5%, while no upfront fees will be imposed for investments transacted through i-Invest via EPF i-Akaun.
“Eligible and financially literate members may wish to take advantage of the lower fees structure to optimise returns and diversify their portfolio according to their retirement plans. The timing is also opportune as the current market downtrend offers opportunities to invest in undervalued funds,” EPF CEO Alizakri Alias said in the statement today.
He, however, cautioned members to conduct proper research and analysis of funds, through tools available in the i-Invest platform, for example, to ensure the funds meet their long-term investment strategies and fit their risk profiles.
EPF also said to ensure the continued health of the fund management industry during these challenging times, it will be reducing the service fee charged to FMIs for the same period by 50%.
The service fee which will be reduced to 0.0625% from 0.125% is based on the assets under management (AUM) managed by FMIs and it is not charged to the fund or members.
For members aged 55 and above transacting through i-Invest, the service fee charged to FMIs by the EPF is now reduced to 0.125% from 0.25% per withdrawal amount.
The EPF also said it would also like to remind members that these fee reductions are only applicable to investments made under EPF MIS, and is not applicable to other EPF transactions or services, as claimed by some quarters. — April 30, 2020
