CPF to lower cost of investing

[SINGAPORE] The Central Provident Fund (CPF) Board has moved to lower the cost of investing under the CPF Investment Scheme (CPFIS) by reducing the limits on the total expense ratio (TER) for unit trusts and investment-linked insurance products by 0.2 to 0.3 percentage points.

Under the changes, higher risk funds that are invested in equities will have their TER caps go down from the current 1.95 per cent to 1.75 per cent. TER caps for funds invested in money market products, considered to be of lower risk, will be cut by almost half, to 0.35 per cent.

The new TER caps will kick in from Oct 1, 2014, for new funds under the CPFIS. Changes to existing funds under the CPFIS will take effect from Jan 1, 2016.