Wednesday, July 7, 2010

Lower return from EPF for 2010??

News on 21 June 2010:
EPF Posts RM5.55 Billion Investment Income In Q1 2010
More than 70% Increase Compared to Same Quarter Last Year

As at 31 March 2010, the EPF’s total accumulated fund stood at RM402.22 billion.

Simple math:
RM5.55 b x 4 quarters = RM22.2b / year

RM22.2b / year divided by fund size RM402.22 b = 5.5% p.a only (don't forget that the main contributor to 2010Q1 RM5.55 b income is from equity market (RM2.79b out of RM5.55b) where Q1 is a bull market).

So, do we expect a lower return from EPF for year 2010?

Read more here from KWSP official website.

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