EMPLOYEES Provident Fund (EPF) is offering a 50% fee reduction for contributors investing in its Members Investment Scheme (EPF MIS) from tomorrow.

The reduction in the upfront fees, charged by Fund Management Institutions (FMIs) will be in effect for a period of 12 months until April 30, 2021, hence enabling members to diversify their retirement portfolio at a lower cost. 

EPF chief executive officer Tunku Alizakri Alias said the upfront fee for investments made through agents, will be reduced from a maximum of 3% to 1.5%.

Meanwhile, no upfront fees will be imposed for investments transacted through i-Invest via the EPF i-Akaun. 

“Eligible and financially literate members may wish to take advantage of the lower fees structure to optimise returns and diversify their portfolio according to their retirement plans. 

“The timing is also opportune as the current market downtrend offers opportunities to invest in undervalued funds,” he said in a statement.

The fund will also be lowering service fee charged to FMIs by the EPF by 50%, for the same period.

The service fee will be reduced to 0.0625% from 0.125% and will be based on the FMIs Assets under management.

The fee will not be charged to the fund or members. This is to ensure the continued health of the fund management industry during the current challenging times.

“The EPF would also like to remind members that these fee reductions are only applicable to investments made under EPF MIS, and is not applicable to other EPF transactions or services, as claimed by some quarters,” added Tunku Alizakri. – April 30, 2020.