Monthly Archives: February 2015

Mutual funds + EPF

Will it be good idea to use the Employees’ Provident Fund (EPF) to invest in mutual funds?

I personally don’t think it is worth to take the funds out to invest in mutual funds. The reason is simple, if you use EPF to invest, you not only forgo the 5-6% of annual dividend but you also have to pay a management fee of 5-6% to the fund manager. So, even before you start, you are already lost by 10-12%.

The only time I would use the EPF is to pay for a property and anytime you take the money out from EPF is good thing because EPF is a legalised Ponzi scheme where new contributors pay for the retired ones.

So, better think twice before to use the EPF to invest in mutua funds!

January CPI

Malaysia CPI in January has dropped to 5 years low at 1%; Hence, Bank Negara likely to hold the interest rate. Last month (December 2014) CPI was 1.9%.

Inflation has cooled down because of the drop in crude oil (~$50). Everyone will be happy because of spending less on fuel.

So, the good news is that it can help to boost the consumers spending and the bad news is its going to hit the oil and gas industry very badly; layoff is on the way 🙁 Some are hoping that the crude oil could go back up to $100 again. I wish too. Mission impossible I guess unless OPEC considers to cut the oil production.

I maybe next to be laid off!