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KUALA LUMPUR (April 30): Members of the Eligible Employees Provident Fund (EPF) who invest under the Member Investment Scheme (MIS) will be entitled to a reduction in the initial fees charged by fund management institutions (IMF) for one year.
This rate reduction will begin tomorrow and will be in effect until April 30, 2021 to allow members to diversify their retirement portfolios at lower cost, the EPF said in a statement today.
For investments made through agents, the initial fee will be reduced to a maximum of 1.5% from a maximum of 3%, while an initial fee will not be imposed on investments made through i-Invest through the i-Akaun of the EPF.
“Eligible and financially knowledgeable members may wish to take advantage of the lower fee structure to optimize returns and diversify their portfolios according to their retirement plans. The time is also opportune as the current downtrend in the market offers opportunities to invest in undervalued funds, ”said EPF Chief Executive Officer Tunku Alizakri Alias.
He also urged members to conduct proper research and analysis of the funds to ensure that they meet their long-term investment strategies and fit their risk profiles.
The EPF said it will also halve the service fee it charges the FMI over the same period to help ensure the continued health of the fund management industry in today’s challenging environment.
“The service fee, which will be reduced by 0.0625%, from 0.125%, is based on the assets under management (AUM) administered by the FMI, and is not charged to the fund or its members. For members of 55 years or more transacting through i-Invest, the service fee charged to the FMI by the EPF is now reduced to 0.125% from the 0.250% withdrawal amount, “said the EPF.
The fund further emphasized that fee reductions are only applicable to investments made under the MIS, and not to other EPF transactions or services.
