KUALA LUMPUR, April 30 — Eligible Employees Provident Fund (EPF) members investing under Members Investment Scheme (EPF MIS) will be entitled to a reduction of upfront fees charged by Fund Management Institutions (FMIs), starting May 1, 2020.
The reduction is for a period of 12 months ending April 30, 2021, thus enabling the members to diversify their retirement portfolio at a lower cost.
For investments made through agents, the upfront fee will be reduced from a maximum of 3.0 per cent to a maximum of 1.5 per cent, while no upfront fees will be imposed for investments transacted through i-Invest via EPF i-Akaun.
EPF chief executive officer Tunku Alizakri Alias said 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.
“However, we urge members to do 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,” he said in a statement today.
He also added that EPF will also be reducing the service fee charged to FMIs by the EPF by 50 per cent for the same period to help ensure the continued health of the fund management industry during the current challenging times.
“The service fee which will be reduced to 0.0625 per cent from 0.125 per cent 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 per cent from 0.250 per cent per withdrawal amount,” he said.
The EPF 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. — Bernama
