What EPF investment fees are being reduced from May 1?

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EPF Investment Fees Reduced for Members and Fund Managers

Effective May 1, 2020, eligible Employees Provident Fund (EPF) members participating in the Members Investment Scheme (EPF MIS) will experience reduced upfront fees charged by Fund Management Institutions (FMIs). This reduction, which is in effect for 12 months until April 30, 2021, aims to lower the cost for members diversifying their retirement portfolios. Furthermore, EPF is implementing a 50% reduction in its service fee to FMIs during the same period.
Reduced Upfront Fees for Members

For investments made through agents under the EPF MIS, the maximum upfront fee has been lowered from 3.0% to 1.5%. Additionally, investments conducted via the i-Invest platform through EPF i-Akaun will incur no upfront fees. This initiative is designed to encourage more members to explore investment options at a more accessible cost.
EPF Service Fee Reduction for FMIs

EPF is also cutting its service fee to FMIs by half for the duration of the scheme. This fee, based on assets under management (AUM), will decrease from 0.125% to 0.0625%. This reduction is intended to support the financial health of the fund management industry during challenging economic conditions and is not directly charged to members or their funds.
Specific Fee Adjustment for Older Members

A further adjustment applies to members aged 55 and above who transact through i-Invest. For these members, the EPF service fee charged to FMIs on withdrawal amounts is reduced to 0.125% from the previous 0.250%. This targeted reduction acknowledges the specific needs and transaction patterns of older EPF members.
Scope of Fee Reductions

It is important to note that these fee reductions are exclusively applicable to investments made under the EPF MIS. The revised fee structures do not extend to any other EPF transactions or services offered by the fund. This clarification ensures that members understand the specific scope of the fee adjustments.

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What EPF investment fees are being reduced from May 1?

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