PETALING JAYA: Eligible Employees Provident Fund (EPF) members investing under its members investment scheme will be entitled to a reduction of upfront fees charged by fund management institutions (FMIs) for a period of 12 months ending April 30, 2021.
For investments made through agents, EPF said the upfront fee will be reduced from a maximum of 3% to a maximum of 1.5%, while no upfront fees will be imposed for investments transacted through i-Invest via EPF i-Akaun.
Chief EPF officer Alzakri 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,” he said in a statement today.
“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.”
Simultaneously, to help ensure the continued health of the fund management industry during the current challenging times, it will also be reducing the service fee charged to FMIs by the EPF for the same period by 50%.
It explained that the service fee which will be reduced to 0.0625% from 0.125% is based on the assets under management managed by FMIs and it is not charged to the fund or members.
Furthermore, 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% from 0.250% per withdrawal amount.
It also reminded members that the fee reductions are only applicable to investments made under EPF’s member investment scheme, and is not applicable to other EPF transactions or services, as claimed by some quarters.
source https://www.thesundaily.my/business/epf-reduces-upfront-fees-for-members-investment-scheme-BD2353542
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