Let me first start by admitting that I am almost clueless about Unit Trusts. However a few years back I decided to support a friend who is a Public Mutual agent, and ever since funds have been withdrawn from my EPF to go into unit trusts that he manages. But it seems like his unit trusts have been underperforming (versus EPF's return) for the past few years since we started.

Now he's asking to withdraw even more from my EPF. Should I stop all of this and just keep the funds in EPF? Or let him continue with the unit trusts?

If you want to buy unit trust, now is the good time. Stock market is down.

Most of the time: EPF is better, very low risk, guaranteed by government. No charges to sell back.

It’s a good way for Unit Trusts agents to siphon your EPF and immediate profit for agents.

Unit trust return also not that good anyway minus fees year fees agent fees. Better leave it in EPF.

it is a no brainer. Withdrawing from EPF to unit trusts is not a good option. Why?
1. Buying into the unit trust, you have to pay 3% Management fee. Imagine, the trust have not even started making money for you, you are already at a -3% position.
2. There is no guarantee that you will make money. In fact, some funds are losing value. At least EPF is guaranteed to give you at least the prevalent FD rate.

Some may argue, the market is cyclical, when times are good, it will the losses will be recouped if we look at 5y -10y horizon. Right, the same can be said about EPF, risk free.

There were fear about EPF being a piggy bank of the government before due to mismanagement of government finances which is true to a certain extent. However, i want to believe that EPF is one of the well managed government entity that we have in Malaysia just like LHDN/Khazanah/PNB/BNM. The people running it day to day are professionals and are the creme de la creme of the society. It is the politicians sitting in the Boardroom that are creating all the problems.

They say to sell Unit Trusts during MCO.
I didn't and I lost about RM10k.

Don't TRUST them. Only a handful beats EPF returns.

Whats the unit trust you bought?
I believe most fund dropped due to covid19, excluding precious metal

To be honest I don't really know. Just that when I met him about 2-3 months ago, I know that only some are positive, but still nowhere near to cover the losses.
Thank you guys for giving your opinions. So far I'm seeing that it's best to just keep the funds in EPF.

it depends if u know how to choose a quality funds, if u bet on good quality funds yeah, your annual return could be more than EPF return

but how many people out there know how to screen out quality funds to invest?

majority are just persuaded by sale oriented agents (which most likely dunno or not well versed on quality funds as well) to take out EPF monie and invest in funds.

these sale hold no responsibility in your investment decision yet earn on your investment's sale charge tho

majority of time if u let your friend manage your UT, sure koyak one

i got my friend to manage my UT also, money burn, i ask to sold the remaining and then i took back whatever i have and manage my own UT buys

They all do part time, they only start to care when u stop giving them money. My friend also asked me to draw out my EPF, which i didnt cause no way can beat EPF return.

so like most of the respondents here, i'm voting to keep the money in EPF.

it's just so hard to find a unit trust fund that could give you more than 5 - 6% p.a. returns. i'd say picking an EPF-beating fund is almost like gambling.

be good with your friend, be better with your money

I made the mistake not once but twice. First time into CIMB Mutual Fund. Lost 5-7%. Took out the fund and put back in EPF. Then, 2nd time with Kenaga. Lost 8-9%. (This is including commission but not including the potential profit I would have gain from EPF).

based on feedback here...epf still the safest option to keep more money in it

Stay away from local unit trusts like a plague. You are not going to make money out of it. The agents and the FI will get paid no matter what the economic climate will be. At least EPF guarantees minimum 2% profit if im not mistaken.

your friend didn't tell you that you can diy invest your epf money with 0 - 0.5% sales charge only ?

https://www.kwsp.gov.my/-/kwsp-salurkan-rm1...ortfolio-luaran

those agents gonna hate me here

Divest all my UT back to EPF years back. No regrets.

My best fiend is a unit trust agent, but he knows that I really dislike unit trust agents,with a passion haha. I'm not generalizing but I can say that 99% of unit trust agents don't care about your savings or how much money you make. They only care about their commission. For me personally, I don't touch my EPF money.

Epf is one of the safest investment. Not many can earn more than epf. Even if there is, its higher risk anyway.

Having said that, i expect this year epf divvy not that good. Hence i dropped some into unit trust from epf for the first time. A bit late to the market. But im paper earning close to 10% in a month time. Banking on the recovery of the market.

Now a bit regret didn't drop more.

This post has been edited by cempedaklife: May 15 2020, 08:01 PM

my own preference is not to invest using EPF since EPF itself is not that bad either. also by using EPF to invest into UT through UT agent, the total fee charged will be 3%. so yea the UT you choose at least must perform at least more than 7% to grow more in the long run.

No good idea to put money out of EPF and put in unit trust.

But certainly it is a good idea to invest in the stock market.

Usually people first contribute the maximum to EPF (think it is 60000) and then put the rest in FD and stock market.