I have just opened an account with Public Mutual Fund, using my EPF fund. Didn’t know I could do it until this week. How it works?
There are a few rules here:
- EPF account 1 (the biggest among the three) must have more than RM50k.
- RM50k in the account 1 cannot be withdrawn.
- 20% of the balance (minus RM50k) can be used at any one time to buy unit trusts.
- Once account is opened & paid by EPF fund, it cannot be topped up with cash.
- EPF account 1 can be withdrawn every 3 months to top up. Same rules above applies for every withdrawal (20% of the balance after minus RM50k).
- After selling the trust, the capital and profit will have to go back to EPF.
Since the EPF’s interest is not good, if you think unit trusts can give you better return, why not invest in it using the EPF money?
