On 16 Feb 2019, Employees Provident Fund (EPF) has declared a dividend rate of 6.15% for Conventional Savings 2018, and 5.9% for Shariah Savings 2018.
Here is the table on the EPF Dividend Rate in the past 20 years.
Why EPF can maintain 4,25 % to 6.9% dividend for the past 20 years?
One of the important part is portfolio management.
Refer to EPF Annual Report, they always maintain the portfolio into Real Estate (10%), Cash (3%), Fixed Income (51%) and Equity (36%)
Note : Equity could be diversified partially to oversea equities as well.
This is very important for you if you want to maintain the yearly return between 4% to 7% per year.
If you are investing into fixed deposit only and always complain about the return is too low then there is your problem, not the fixed deposit's problem.
If you are investing your money into unit trust by only choosing equity funds, then you might facing negative in your unit trust (if you only invest in local/Malaysia market).
You may complain to your unit trust consultant about the investment is not making money in the past 3 years.
Don't depend on only one class of investment fund/ product by hoping good return every year. You need to diversify your money.
Look at your money / portfolio into bigger picture.
Are you diversify your assets/ monies into real estate, equity (funds or stocks), fixed income and cash?
Here is the simulation of 4 unit trust funds into 1 portfolio.
We are putting local equity fund, oversea equity fund, property fund and bond fund into the same portion to the portfolio.
Picture 1 is 10 years performance and Picture 2 is 1 year performance.
Look at picture 1, the 2 equity funds and property fund are volatile in the past 10 years and most of the time are out performance to the bond fund (blue).
If you look at Picture 2, bond fund (blue) still grow in the stable condition where the other 3 funds are volatile due to recent market situation.
Of course, if you are investing into 1 same class of fund, you may have the chance to make a profit of 10% or even 30% in one year but this is highly depend on the timing. You could have the chance to lose 30% or more in the short period.
At last, you still have to look for your investment objective, your personal risk profile, your investment time horizon and your investment portfolio as well. And you need to sit down with your unit trust consultant or financial planner, communicate to each other and listen to their advice. They might have few solutions for you and choose the best solution which is suit to you.
Note : The above example is based on the date of Feb 2019. Different time line could result to different investment return.
Do consult your investment advisor / unit trust consultant / qualified financial planner before making any decision to investment.
Here is the table on the EPF Dividend Rate in the past 20 years.
One of the important part is portfolio management.
Refer to EPF Annual Report, they always maintain the portfolio into Real Estate (10%), Cash (3%), Fixed Income (51%) and Equity (36%)
Note : Equity could be diversified partially to oversea equities as well.
If you are investing into fixed deposit only and always complain about the return is too low then there is your problem, not the fixed deposit's problem.
If you are investing your money into unit trust by only choosing equity funds, then you might facing negative in your unit trust (if you only invest in local/Malaysia market).
You may complain to your unit trust consultant about the investment is not making money in the past 3 years.
Don't depend on only one class of investment fund/ product by hoping good return every year. You need to diversify your money.
Look at your money / portfolio into bigger picture.
Are you diversify your assets/ monies into real estate, equity (funds or stocks), fixed income and cash?
Here is the simulation of 4 unit trust funds into 1 portfolio.
We are putting local equity fund, oversea equity fund, property fund and bond fund into the same portion to the portfolio.
Picture 1 is 10 years performance and Picture 2 is 1 year performance.
 |
| Picture 1 |
 |
| Picture 2 |
Of course, if you are investing into 1 same class of fund, you may have the chance to make a profit of 10% or even 30% in one year but this is highly depend on the timing. You could have the chance to lose 30% or more in the short period.
At last, you still have to look for your investment objective, your personal risk profile, your investment time horizon and your investment portfolio as well. And you need to sit down with your unit trust consultant or financial planner, communicate to each other and listen to their advice. They might have few solutions for you and choose the best solution which is suit to you.
Note : The above example is based on the date of Feb 2019. Different time line could result to different investment return.
Do consult your investment advisor / unit trust consultant / qualified financial planner before making any decision to investment.
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