EPF FAQs

General

    1. What Is EPF Member Investment Scheme (MIS)?
      Members Investment Scheme (MIS) is an initiative by the EPF to provide investment options to members in enhancing their retirement savings. It allows only eligible members to voluntarily transfer a portion of their excess savings from EPF Account 1 to Fund Management Institutions (FMI)s for eligible investments. The MIS was introduced in November 1996.
    2. Am I eligible to invest through MIS?
      • You can invest through MIS if:
      • Your EPF Account 1 savings exceed basic savings;
      • You are aged below 55*; and
      • You have an investment account with any FMI.
      • * If you are aged 55 and above, you can still utilise the i-Akaun (Member) to invest conveniently with FMIs. However, EPF releases control over such investments, as they are withdrawals from your Akaun 55 and/or Akaun Emas.
      • If you are a non-Malaysian, you are eligible to invest through MIS only if you registered with the EPF before 1 August 1998.
    3. What is Basic Savings?
      It is the minimum level of savings you should have in your EPF Account 1. The minimum level increases with your age. If your EPF Account 1 balance is below your basic savings, you cannot invest through MIS. See basic savings table below.
    4. How can I invest through MIS?
      You can now invest through MIS using: (a) agents; or (b) the i-Akaun (Member). The Investment tab on the i-Akaun (Member) is an online, self-service function that does not require agents. As such, you may be charged higher fees when investing through agents versus the i-Akaun (Member).
    5. What are the eligible investments under MIS?
      Eligible investments under MIS are:

      • approved unit trust funds; or
      • private mandate portfolios.

      The eligible investments must be offered by FMIs, i.e. approved UTMCs and AMCs. Eligible investments are governed by the EPF’s Guidelines on EPF MIS.

    6. What are the EPF’s eligibility criteria for eligible investments?
      The EPF only approves unit trust funds that have a Simple Average Consistent Returns (SACR) or Simple Average Benchmark Rating (SABR) of 2.33 and above based on its most recent performance. There is no such criteria for private mandate portfolios.However, the EPF reserves the right to disallow certain investments based on other quantitative or qualitative factors.
    7. How much can I invest through MIS?
      You can invest your entire Available Investment Amount. After clicking on the Investment tab on the i-Akaun (Member), your Available Investment Amount is shown under the BUY tab. For further information:Members aged below 55: You can invest all your Available Investment Amount. Available investment amount = Eligible investment amount – Transferred amount.The Eligible Investment Amount is equivalent to 30% of any amount exceeding your Basic Savings. The transferred amount is the amount that has already been invested through MIS. See examples below for clarification.Furthermore, the minimum MIS investment amount is RM1,000. Therefore, the minimum savings in excess of Basic Savings required is RM3,333.34, such that RM3,333.34 x 30% = RM1,000.

      Members aged 55-60:
      Your Available Investment Amount is equivalent to almost the entire Akaun 55 balance; however, you must maintain at least RM1,000 in the account.Furthermore, the minimum withdrawal amount for investments with FMIs is RM1,000.Members aged 60 and above: Your Available Investment Amount is equivalent to almost the entire combined balances in your Akaun 55 and Akaun Emas; however, you must maintain at least RM1,000 in Akaun Emas.Furthermore, the minimum withdrawal amount for investments with FMIs is RM1,000.

      All ages:
      The minimum investment amount also depends on the chosen unit trust fund and whether the investment is an initial or subsequent one.

      Example 1:
      If you are 30 years old, the Basic Savings is RM35,000. If your EPF Account 1 savings balance is RM50,000, the Eligible Investment Amount is: (RM50,000 – RM35,000) x 30% = RM4,500. If you have already invested RM2,000 through MIS within the current validity period, the Available Investment Amount is RM4,500 – RM2,000 = RM2,500, which is more than the minimum MIS investment amount of RM1,000. If the minimum fund investment amount is RM1,200, you must invest at least RM1,200 in the unit trust fund, up to a maximum of RM2,500.

      Example 2:
      If you are 30 years old, the Basic Savings is RM35,000. If your EPF Account 1 savings balance is RM37,000, the Eligible Investment Amount is: (RM37,000 – RM35,000) x 30% = RM600. You cannot invest through MIS since RM600 is less than the minimum MIS investment amount of RM1,000.
    8. How can I increase the amount invested through the i-Akaun (Member)?
      In order to enjoy the benefits offered by investing through the i-Akaun (Member), you may contribute up to RM60,000 per annum from your personal savings into your EPF accounts.However, amounts from self-contributions may not be fully available for investments through MIS. This is because self-contributions are subject to the same conditions as compulsory EPF contributions.First, only 70% of self-contributions will be credited into your EPF Account 1, with the remaining 30% credited into your EPF Account 2. Secondly, any amount credited into your EPF Account 1 will be used to satisfy the Basic Savings first.
    9. What is the validity period?
      After clicking on the Investment tab on the i-Akaun (Member), your validity period is shown under the BUY tab. For further information:Your eligible and Available Investment Amounts are applicable for 3 months only, beginning from any attempted MIS transactions after the end of the last validity period (if any).For example, if you attempt a MIS transaction on 4 January 2019, the validity period will be from 4 January 2019 to 3 April 2019. You may make as many transactions as you wish within this validity period, subject to the Available Investment Amount. After 3 April 2019, if you attempt a MIS transaction on 1 May 2019, the updated validity period will be from 1 May 2019 to 31 July 2019
    10. What is FMI?
      A FMI is a fund management institution approved by the EPF to offer eligible investments to EPF members. FMIs are typically unit trust management companies (UTMCs) or asset management companies (AMCs). FMIs are governed by the EPF’s Guidelines on EPF MIS.
    11. What are the similarities/differences between UTMCs And AMCs?
      Key Differences
      UTMCs pool funds from various investors and invest their funds based on a specific strategy or mandate. Investors own units that represent their proportional ownership of the unit trust fund’s net assets. Unit trust funds are more suitable for smaller investment amounts, as diversification is achieved by pooling funds from various investors.AMCs manage each investor’s portfolio based on a private mandate, taking into account the individual investor’s returns requirements, risk tolerance and constraints. Each investor fully owns his/her private mandate portfolio. Private mandate portfolios managed by AMCs are more suitable for larger investment amounts in order to achieve diversification.

      Key Similarities
      The fee structures of both UTMCs and AMCs are similar. They charge an annual management fee, and also typically impose an initial sales charge. They typically invest in similar asset types, i.e. equity, bond, money market, mixed asset or property.

    12. What are the types of funds offered by UTMCs
      Funds offered by UTMCs can be distinguished by asset type (e.g. equity, bond, money market, mixed asset or property), geographical focus (e.g. ASEAN, Malaysia, global), Shariah or conventional status, risk/volatility indicators and performance metrics. On the i-Akaun (Member), you are able to filter and compare funds through the Investment tab using the Funds Selector function.
    13. What are the types of private mandates offered by AMCs
      Private mandates offered by AMCs include non-discretionary, discretionary and semi-discretionary mandates. Discretionary mandates give the portfolio managers full investment control, while non-discretionary mandates give the clients full investment control. Semi-discretionary mandates give both portfolio managers and clients shared investment control.Under MIS, only discretionary mandates are allowed for now. If you have previously established non-discretionary or semi-discretionary mandates, you are allowed to maintain those portfolios, but no additional funds can be injected. Portfolios managed by AMCs can invest directly into various asset types, or invest indirectly through approved unit trust funds.
    14. What is an IUTA?
      An IUTA or Institutional UTS Adviser is a corporation registered with FIMM that is authorised to market and distribute various unit trust funds of FMIs. When investing through the i-Akaun (Member), approved unit trust funds of certain FMIs can only be transacted through IUTA platforms (this is because the relevant FMIs do not have their own platforms that are connected to the i-Akaun (Member).
    15. What is FIMM?
      FIMM or the Federation of Investment Managers Malaysia (formerly the Federation of Unit Trust Managers) is a self-regulatory organisation appointed by the Securities Commission Malaysia to regulate entities that market and distribute unit trust and private retirement schemes, including UTMCs.
    16. When does the EPF release control?
      The EPF releases control over investments through MIS, subject to any other conditions, under the following scenarios:

      • You have attained the age of 55;
      • You have passed away and a full withdrawal of your EPF savings is made by your next-of-kin, beneficiaries and/or nominees;
      • You make a full withdrawal of your EPF savings due to physical or mental incapacitation that prevents employment;
      • You make a full withdrawal of your EPF savings as a non-Malaysian and are about to leave Malaysia; or
      • You make a full withdrawal of your EPF savings as a pensionable employee aged below 55 and are still employed with the Government of Malaysia, any State Government or any statutory or local authority.
    17. What happens when the EPF releases control?
      When the EPF releases control, you must deal directly with FMIs in relation to any investments previously made through MIS. If you redeem any investments, the proceeds cannot be deposited back into your EPF account(s), and must be deposited into your personal bank account. Kindly contact the relevant FMI for further clarification.

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