Deric Lim asked 9 years ago
Do you think that it’s worthy to use EPF account A to invest in Unit Trust?
Does Unit Trust really generate higher return than EPF?
Which company’s unit trust has the best performance?
KCLau Staff answered 9 years ago
EPF is giving ~6% dividend.
When you invest UT using EPF money, there is upfront load of 3%.
So if you fund doesn’t perform 9% in the first year, you already lose out.
And also there is 1.5% management fee charged by UT. If your funds don’t continue to produce >8% per year, you are losing out as well.
I don’t think it is a good idea to invest in UT using your EPF money, unless you want to diversify by investing in funds that has global exposure.
KCLau 
or another way is to when the market is deeply depressed and general market is low P/E, selling dirt cheap, you can use your money in EPF to invest in equity fund to take advantage of the bargain.