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How will CPF investors benefit from the reduced Total Expense Ratio (TER) caps?
Expenses on investment have a significant impact on returns. Hence, reducing Total Expense Ratio caps will lower the expenses that CPF investors have to bear and increase a fund's per-unit net asset value. This will enable CPF members who have invested in the fund to accumulate their retirement savings faster.

The following example illustrates the impact of expense ratio:

Amount invested: $10,000 over 30 years, with annual return of 5%1.

Total expense ratio of the Fund decreases from 1.95% to 1.75%

Savings = $1,475 (or 6% more in his retirement savings)


Expense Ratio of 1.95%

Expense Ratio of 1.75%

Net investment value after 30 years





1 Assumes no front end load