What You Need To Know About EPF Members Investment Scheme

by | Jan 14, 2018 | Portfolio Investment

What is Member’s Investment Scheme (MIS)?

This scheme allows members to transfer a portion of their savings from Account 1 for the purpose of investment in order to increase their retirement savings.

 

Members may invest not more than 30% of their savings in excess of the Basic Savings amount from Account 1 through the appointed Fund Management Institutions (FMIs) approved by the Ministry of Finance. This is to limit the exposure of investment risk on their retirement savings.

KWSP

Who is eligible to participate in the Member’s Investment Scheme (MIS)?

  1. Malaysian Citizen.
  2. Non-Malaysian who:
  • is an EPF member before 1st August 1998
  • obtained a Permanent Resident status (PR)

 

What is the amount that members must have to be eligible to invest in the Fund Management Institutions (FMIs)?

Members may invest from their savings under the following conditions:

  • 20% from the members’ savings in excess of the Basic Savings amount in Account 1
  • formula: (Account 1 – Basic Savings) x 20%
  • the minimum amount for Members Investment Scheme (MIS) is RM1,000
  • investments can be made once every 3 months
  • investments can be made to one Fund Management Institution (FMI) at a time
  • subsequent investments can be made with the same or other approved Fund Management Institutions (FMIs).

 

Calculation sample of permitted investment:

*Basic Savings Schedule may refer to here.

The updated list of Fund Management Institutions (FMIs) can be obtained at any EPF branches or via EPF website at www.kwsp.gov.my. You may also refer to https://goo.gl/ebdMhU.

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Returning The Investment To EPF

  • Members are required to return all amounts to the EPF (including the gains) once the investment units have been sold before reaching the age of 55. The money will then be credited into the members’ Account 1.
  • Members are not allowed to withdraw any amount (‘no leakages’) from the money invested through the Fund Management Institutions (FMIs).

Remember, members are fully responsible for their investments. But what if you have no idea which fund to invest in? Refer to EPF Enhancer for a higher return investment with almost zero risk.