Think hard about embracing the new CPF life-cycle investment scheme
In an increasingly volatile world, hold some risk-free investments
FOLLOWING the Monetary Authority of Singapore’s Equity Market Development Programme, where fund managers are allocated funds to invest in the local bourse, Singapore stocks could see huge liquidity inflow from the launch of the new Central Provident Fund (CPF) life-cycle investment scheme in 2028.
Recently, Citi highlighted that this new scheme might channel up to S$9 billion a year into Singapore equities.
Through diversified life-cycle portfolios, CPF members can earn potentially higher returns than those provided by the risk-free interest rates of the existing system by investing their CPF savings into a range of instruments that include equities.