A question CPF investors often ask is, how do you compare the return between using CFP to invest and leaving the CPF monies in the CPF account?
CPF monies earn a risk free interest rate of 2.5% p.a. for Ordinary Account and 4% p.a. for Special Account. The interest is computed monthly and, compounded and credited annually.
To make things a little complicated, CPF investment is usually make through an angent bank which charges transaction fee and service fee. On top of that some unit trusts fund also charges a fee for purchase or redemption.
Taking all these into account, how to compare the return?
Let me introduce a tool to do that.
Continue reading ‘CPF Unit Trust Investment Profit & Loss Calculator’
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