KUALA LUMPUR (April 30): Eligible Employees Provident Fund (EPF) members investing under the Members Investment Scheme (MIS) will be entitled to a reduction in upfront fees charged by fund management institutions (FMIs) for a year.

This fee reduction will start tomorrow and be in effect until April 30, 2021 to enable members to diversify their retirement portfolios at a lower cost, the EPF said in a statement today.
 
For investments made through agents, the upfront fee will be reduced to a maximum of 1.5% from a maximum of 3%, while no upfront fee will be imposed on investments transacted though i-Invest via the EPF's i-Akaun.

“Eligible and financially literate members may wish to take advantage of the lower fee structure to optimise returns and diversify their portfolios according to their retirement plans. The timing is also opportune as the current market downtrend offers opportunities to invest in undervalued funds,” said EPF chief executive officer (CEO) Tunku Alizakri Alias.

He also urged members to do proper research and analysis of funds to ensure the funds meet their long-terms investment strategies and fit their risk profiles.

The EPF said it will also halve the service fee it charges FMIs during the same period to help ensure the continued health of the fund management industry in the current challenging environment.

"The service fee, which will be reduced by 0.0625%, from 0.125%, is based on assets under management (AUM) managed by FMIs, and it is not charged to the fund or its members. For members aged 55 and above transacting through i-Invest, the service fee charged to FMIs by the EPF is now reduced to 0.125% from 0.250% per withdrawal amount," the EPF said.

The fund further stressed that the fee reductions are only applicable to investments made under the MIS, and not for other EPF transactions or services.