CPF Investment (CPFIS)
Learn about investing your CPF OA and SA savings through CPFIS in stocks, ETFs, and unit trusts. Understand the rules, risks, and factors to consider.
What is CPFIS?
The CPF Investment Scheme (CPFIS) allows CPF members to invest their Ordinary Account (OA) and Special Account (SA) savings in a range of approved financial products. The goal is to potentially earn returns higher than the CPF interest rates.
Target: exceed 2.5% OA rate
Target: exceed 4% SA rate
Experienced losses (2013-22)
CPF Board Performance Data (2013-2022)
According to CPF Board data, 45% of CPFIS investors made losses from 2013-2022, and 25% beat the CPF OA interest rate. This data may help inform your investment decision.
Factors to Consider for CPFIS
CPFIS-SA Considerations
- • SA earns guaranteed 4% risk-free
- • Historical data shows difficulty in consistently beating 4%
- • Investment losses reduce retirement savings
- • Limited product options available for SA
- • Performance data shows most investors underperform SA rate
CPFIS-OA Considerations
- • OA earns 2.5% guaranteed
- • Long-term market returns may exceed 2.5%
- • Investment losses may affect housing plans
- • Requires investment knowledge and experience
- • Lower-cost products may reduce fee impact
Other CPF Options
- • OA to SA Transfer: Transfer OA funds to SA to earn 4% guaranteed rate
- • Voluntary Top-ups: Top up CPF accounts to earn 4% with potential tax relief
- • Cash Investments: Invest cash while keeping CPF funds earning guaranteed rates
CPFIS-OA Suitability Factors
- • Excess OA funds beyond housing needs
- • Investment experience and knowledge
- • Preference for lower-cost investment products
- • Long investment time horizon (20+ years)
- • Ability to accept short-term market volatility
CPFIS-OA Rules
| Rule | CPFIS-OA |
|---|---|
| Reserved Amount | $20,000 must remain in OA |
| Investable Amount | OA balance minus $20,000 |
| Stock Limit | Up to 35% of investable OA in stocks |
| Gold Limit | Up to 10% in gold ETFs |
| Unit Trusts | No limit (within investable amount) |
The 35% Stock Limit
You can only invest up to 35% of your investable OA savings (after $20,000 reserved) in stocks. For example, if you have $100,000 in OA, investable amount is $80,000, and stock limit is $28,000 (35% of $80,000).
CPFIS-SA Rules
| Rule | CPFIS-SA |
|---|---|
| Reserved Amount | $40,000 must remain in SA |
| Investable Amount | SA balance minus $40,000 |
| Stock Limit | NO stocks allowed |
| Allowed Products | Only low-risk products (bonds, certain funds) |
| Risk Level | Lower risk than CPFIS-OA products |
CPFIS-SA Performance Context
SA accounts earn 4% guaranteed interest. CPFIS-SA allows investment in lower-risk products, which historically have shown difficulty in consistently exceeding the 4% SA rate. This involves accepting investment risk while the potential for returns above the guaranteed rate may be limited.
Allowed Investment Products
CPFIS-OA Products
- ✓ Unit Trusts (approved funds)
- ✓ Investment-Linked Insurance (ILP)
- ✓ Annuities
- ✓ Endowment policies
- ✓ Singapore Government Securities
- ✓ Treasury Bills
- ✓ Stocks (35% limit)
- ✓ ETFs (including gold ETFs)
CPFIS-SA Products (More Restricted)
- ✓ Unit Trusts (lower risk only)
- ✓ Investment-Linked Insurance (ILP)
- ✓ Annuities
- ✓ Endowment policies
- ✓ Singapore Government Securities
- ✗ NO stocks, ETFs, or gold
Lower-Cost CPFIS-OA Products
- • STI ETF: Tracks Singapore's Straits Times Index (expense ratio approximately 0.3%)
- • ABF Singapore Bond Index Fund: Singapore government bonds (expense ratio approximately 0.2%)
- • Global index funds: Various CPFIS-approved options available with varying expense ratios
CPFIS vs T-Bills vs SSB (2026 Comparison)
| Option | 2026 Yield/Rate | Risk Level | CPF Eligible? |
|---|---|---|---|
| CPF OA Interest | 2.5% (guaranteed) | Zero | Yes |
| CPF SA Interest | 4.0% (guaranteed) | Zero | Yes |
| T-Bills (6-month) | 3.0-3.5% | Very Low | Yes (CPFIS-OA) |
| SSB (10-year avg) | 2.8-3.2% | Very Low | No (Cash only) |
| STI ETF (Historical) | 5-7% (variable) | High | Yes (35% limit) |
| Unit Trusts (Avg) | Varies | Medium-High | Yes |
2026 Market Context
As of 2026, T-bills are yielding 3-3.5%, which narrows the gap between CPFIS returns and CPF OA interest (2.5%). T-bills through CPFIS-OA may offer returns above the OA rate with lower risk compared to equity investments. This option requires active management and involves transaction costs.
Risks & Considerations
Market Risk
CPFIS investments are subject to market risk and can lose value. Unlike CPF's guaranteed interest rates, CPFIS investments have no guaranteed minimum return. Market downturns may result in reduced investment values.
Management Fees
CPFIS products may charge management fees ranging from less than 1% to over 2% annually. These fees are deducted from investment returns and can impact net performance over time.
Investment Behavior
Investment decisions such as selling during market downturns, frequent trading, or chasing short-term trends may negatively impact long-term returns.
Opportunity Cost
Funds invested through CPFIS do not earn CPF guaranteed interest rates during the investment period. If investment returns are lower than CPF rates, the difference represents an opportunity cost.
CPF Board Performance Data (2013-2022)
- • 45% of CPFIS members experienced losses
- • 25% achieved returns above the OA interest rate of 2.5%
- • Average returns were below CPF guaranteed rates
- • Products with higher fees showed lower net returns
CPFIS Fee Comparison 2026
Fees are an important factor in CPFIS performance as they are deducted from investment returns. Different products have varying fee structures. Below is a comparison of typical fees:
| Product Type | Typical Annual Fees | Sales Charge | Impact Over 20 Years |
|---|---|---|---|
| STI ETF | 0.28-0.35% | Nil | Low impact |
| ABF Bond Fund | 0.18-0.25% | Nil | Low impact |
| Low-Cost Index Funds | 0.3-0.8% | 0-1% | Moderate impact |
| Active Unit Trusts | 1.2-2.0% | 1-5% | High impact |
| ILPs (Investment-Linked) | 1.5-3.0% | 0-5% | Very high impact |
Example: Lower Fee Product
Invest $100,000 in STI ETF (0.3% annual fee)
- Annual fees: approximately $300
- 20-year cumulative fees: approximately $6,000-8,000
- Projected value at 6% gross return: approximately $320,000
Example: Higher Fee Product
Invest $100,000 in ILP (2.5% annual fee)
- Annual fees: approximately $2,500
- 20-year cumulative fees: approximately $50,000-80,000
- Projected value at 6% gross return: approximately $200,000
Impact of Fees on Returns
A 2% annual fee, while appearing small, can significantly impact returns over 20-30 years, potentially reducing total returns by 30-40%. For example, if investment returns are 6% and fees are 2%, the net return is 4%, which is equivalent to the SA guaranteed rate but with investment risk.
How to Start CPFIS Investing
Open a CPF Investment Account
Open an account with any of the 3 CPF agent banks: DBS, OCBC, or UOB. Bring your NRIC to any branch.
Check Your Investable Amount
Log in to CPF website to check how much you can invest after reserved amounts. Remember the 35% stock limit for OA.
Select Investment Products
Review CPFIS-approved products and their expense ratios. Different products have varying fee structures, with unit trusts and ILPs typically having higher fees than ETFs. STI ETF is one example of a lower-cost option.
Ongoing Management
CPFIS investments require ongoing monitoring. Long-term investment strategies typically involve maintaining positions through market cycles. Consider the impact of fees and the benefits of diversification.
Pre-Investment Considerations
Before starting CPFIS, evaluate your financial situation, investment knowledge, risk tolerance, and time horizon. CPF accounts earn guaranteed interest rates (2.5% for OA, 4% for SA). CPFIS involves investment risk and may not be suitable for all investors. Consider your ability to accept potential losses and whether you have sufficient time horizon for long-term investing.
Frequently Asked Questions
Can I transfer CPFIS investments back to CPF?
Yes, when you sell CPFIS investments, the proceeds (including any gains or losses) are credited back to your CPF account. You must sell to get money back into CPF.
What happens to CPFIS investments when I turn 55?
You can continue holding CPFIS investments after 55. However, you may need to sell to meet Retirement Sum requirements if your CPF balances are insufficient.
Are dividends from CPFIS stocks credited to CPF?
Yes, dividends and distributions from CPFIS investments are credited to your CPF Investment Account and can be reinvested or left to accumulate.
Can I use CPFIS to buy Bitcoin or crypto?
No, cryptocurrencies are not approved CPFIS products. You can only invest in approved products like stocks on SGX, approved unit trusts, and ETFs.
What is CPF shielding?
CPF shielding was a strategy to protect SA from being used for housing by investing it through CPFIS. However, this loophole was closed in 2023. CPFIS investments are now included when determining amounts available for housing.
Sources and further reading
Official sources and references for rules, rates, and schemes discussed on this page. Numbers on this site may be rounded or illustrative; confirm current terms with the relevant agency, CPF Board, insurer, or lender.
- CPF Investment Scheme (CPFIS) Investing OA and SA savings. CPF Board — CPF investment schemes
- Self-Awareness Questionnaire (SAQ) MAS requirements before investing under CPFIS. MAS — CPF Investment Scheme