9 Apr 2026

SOURCE: CPF Board

You receive plenty of safety messages related to your finances daily. Warnings, reminders, the occasional nudge to stay alert. But how many of them make you stop and think?

Being a savvy investor goes above chasing returns, but rather knowing exactly what you’re putting your money into and why.

Putting your money into a product you don’t fully understand, one with hidden fees, lock-in periods, or risks you were never told about, can set you back for years. Before you commit to anything, keep these three safe investment tips in mind to protect your money.

1. If the returns sound too good to be true, they probably are

"I've got a great deal - high returns, and completely risk-free. Interested?" This proposition might sound appealing, but the harsh reality is that risk-free and high-return investments do not exist.  

Every investment carries some level of risk. The higher the potential return, the higher the risk involved. If investment products are promising double-digit yields while being promoted as low-risk options, take extra care to check that the investment is legitimate.

2. Read the fine print before you invest

High returns get all the attention. They're the headline and the hook that brings you in. But the real story of any investment sits in the documents most people never read.

Before you commit your money, take the time to learn more about the product's prospectus, product disclosure sheet, and fact sheet. These important documents tell you what you’re getting into and, more importantly, what you could lose.

Here are some things to look for when you go through them:

Fees and charges
Every investment has a cost. This can be in the form of management fees and sales charges that can eat into your returns over time. A product that promotes a specific amount of return might net far lower returns once fees are factored in. 

Lock-in periods
Some products tie up your money for years. If you need to exit early, you may face penalties that wipe out whatever gains you've made. Before investing, it’s a good idea to think about what happens if you need this money before the investment matures.

3. Know your exit strategy before you enter

Most people research an investment by looking forward. What are the projected returns? How long does it take to grow? But there's one question that doesn't get asked nearly enough: how do I get out?

Different products have very different rules when it comes to getting your money back. For example, endowment plans often come with surrender charges if you exit before the policy matures. Depending on when you exit, you could walk away with significantly less than what you put in.

Singtel Special Discounted Shares

Understanding your exit options is also important if you're holding shares such as Singtel Special Discounted Shares (SDS). 

The SDS scheme was introduced in 1993 as part of the Government’s efforts to give Singaporeans a stake in Singapore’s economic success through share-ownership. 

CPF Board was appointed as trustee to facilitate Singaporeans’ share purchase, as many were unfamiliar with owning shares. CPF members were able to buy discounted Singapore Telecom (Singtel) shares in 1993 (ST "A" shares) and 1996 (ST2 shares) using their CPF savings, with the shares held in Central Depository (CDP) accounts under CPF Board’s name.

Today, Singaporeans are more financially savvy and familiar with share-ownership. Given that the SDS scheme has met its intent and the legacy trustee arrangement for CPF Board to support share ownership is no longer necessary, Singtel SDS will be transferred from CPF Board to the CDP accounts of SDS holders to give them direct control over their shares. The transfer is planned for 21 November 2026, and is subject to the passing of the Central Provident Fund (Amendment) Bill in Parliament. 

CPF members who own Singtel Special Discounted Shares (SDS) will have the option to either keep their Singtel SDS or sell their shares. If they choose to sell, they can retain them in CPF Ordinary Account (OA) or withdraw the sale proceeds in cash, as CPF withdrawal conditions will be waived for sale proceeds from 8 April 2026. 

How to check if you have Singtel Special Discounted Shares

Visit the Singtel SDS page and log in using your Singpass to check if you have any SDS holdings. 

You can also call the Singtel hotline at 1713 if you require further assistance

What to do if you have Singtel Special Discounted Shares

SDS holders with individual CDP accounts

SDS will be automatically transferred to your individual CDP accounts on 21 November 2026. Should you wish to sell your SDS, you can choose to receive the sales proceeds in cash or retain them in your CPF OA. CPF withdrawal conditions will be waived for sale proceeds.

SDS holders who also own Singtel ordinary shares will have both sets of shares consolidated in the same CDP account for ease of management.

SDS holders without individual CDP accounts:

If you don’t have an individual CDP account, SDS will be transferred to a designated CDP account that will be created in your name on 21 November 2026. 

Should you wish to sell your SDS, you can also choose to receive the sales proceeds in cash or retain them in your CPF OA. CPF withdrawal conditions will also be waived for sale proceeds.

Invest smart with these safe investment tips

Doing your homework on any potential investment opportunity is an important first step for any savvy investor. While it’s easy to get attracted to high returns, taking the time to learn more about how the investment works will pay off in the long run.

If you're holding Singtel SDS, take note of the transfer exercise taking place this year. Whether you plan to sell or hold, make sure you understand what happens to your shares.

Information in this article is accurate as at the date of publication.