EPF unit members can easily move their money online in Account 1 to invest in unit trust funds. The sales charges is only 0 - 0.5% which is considered very cheap and lower than what is charge typically for buying unit trust funds.
Once login to EPF's iAccount portal, there is an Investment button.
Inside the investment page, EPF members has got unit trust comparison filter tools to filter out unit trust funds based on a variety of categories.
If EPF members decides to invest, then he/she can just click on the Buy button, go through phone verification and is done.
For my 2 cents worth of opinion, I feel money in the EPF should not be taken out and placed into unit trust funds for the following reasons :
1) EPF has an edge over fund management companies
A lot of good deals come to EPF 1st and EPF sometimes has got influence to move company share prices.
2) EPF wants people to move out money as the fund is way too big to be managed
EPF has many times mentioned that their funds that they are managing is too big to generate efficient returns in the long run, that is exactly why they are making it easier for people to move money out into unit trusts using this online platform.
3) EPF has a responsibility to deliver +ve returns to their members
While not explicitly stated, EPF which manages state retirement funds has got a social obligation to deliver positive returns to their members, it would be unheard madness if EPF didnt declare a dividend higher than bank fixed deposits.
4) EPF's good track record
So far EPF has been consistently delivering above average returns compared to the majority of unit trust and fixed deposit rates. Moving out money into unit trusts will not get the same returns.
For example, my investment in the so called PRS (Private Retirement Scheme) via unit trusts has got negative gains on Public Mutual PRS Strategic Equity Fund. Therefore it's better put money in EPF and let them do their job and citizen's mandate.
