unit trust: epf investment

important points to remember when investing in unit trust using epf money:
· service charge is capped at 3%, as compared to 5-6% for investment using cash (great!). furthermore, the min balance required in account 1 is no longer set at rm55k. it is now based on the age of the investor.
· it can be done once every three months, depending on the balance of account 1. the amount ranges from a minimum of rm1000 to a maximum of 20% from the allowable balance. i have an online epf account, which allows me to check my monthly epf transactions as well as allowable withdrawals. other option is to check at epf kiosks located at their offices, or selected rhb and cimb branches.
· the amount taken out from epf is excluded from epf calculation for their annual dividend. so must make sure that the return from unit trust is superior than epf dividend (2007's is 5.8%).
· the nav price is locked based on the submission date of the application form, not the date of payment received from epf (either forward or historic pricing, depending on which fund).
· it cannot be mixed / topped up with cash money. for example, if i invest rm1000 of epf money, then i cannot do monthly additional investment using standing instructions or lump sum cash additional investments on the same account (need to open separate account for cash investment, even for the same fund)
· any gain (or loss) made will be put back to epf when the units are sold (i.e cannot 'cash' it). if an investor is deceased while the money is still under the unit trust, then his/her epf beneficiaries wont get the money. it will go to his/her unit trust beneficiaries (paid by the unit trust management company, utmc).

how to do it:
· check balance at kwsp kiosk / online.
· fill in investment form for epf.
· fill in epf withdrawal form.
· one copy of i/c and fingerprint (both left and right) on the same side of A4 paper.
· submit application to public mutual branch (by agent).

currently i'm considering between these funds:
- public islamic equity fund, pief
- public islamic balanced fund, pibf
- public islamic optimal growth fund, piogf

mmmmm, which one should it be?

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