Unit Trust (UTs)

Unit Trust (UTs)

UTs/Mutual Funds are professionally managed investment funds which pool the financial resources of individual/corporate investors with similar investment objectives.

Aggregate sums are used by the funds to make large scale investments in a selected investment portfolio which comprises stocks, bonds and/or other assets with the investment objective of the fund in mind.

Local Banks
Foreign Banks
Private Banks
Securities Firms
Insurance Companies
Independent Financial Advisers
Internet Intermediaries
Direct distribution

Types of UTs

Note: These funds may be further classified into Different Currencies, for Retail/Accredited Clients and Open/Closed-ended Structures

The CPFIS gives members the opportunity to invest their CPF savings to enhance their retirement funds:

  • Investments in UTs can be made through the Ordinary (OA) and Special Accts (SA)
  • From 1st May ‘09, one has to set aside the first $30,000 in SA before the remaining can be used for investments. Since 1st Apr ’08, $20,000 to be set aside in OA

As of 13 Jan ‘09, there were approx. 129 funds available for investments under the CPFIS.

Low savings deposit rates environment
Inflation eats into purchasing power
Potentially provides additional source of income
Aim to meet medium and long term financial needs
The need to plan for your retirement

Know Your Investment Needs
Determine Your Risk Profile
Determine The Time You Would Like to Stay Invested
How UTs Fit In Your Investment Portfolio
Know the Risks of UTs
Fund Evaluation & Performance
UT Fee Structure
Other Considerations