EPF Dividend Will Be Lower
In a few weeks, the Employees Provident Fund (EPF) will declare its returns to members and need to forgot the dividend to be 5.8% or more.
The reason is the fund's inherent asset allocation structure, which provides that almost 70% of the funds be channeled into low risk investment such as government securities or highly rated private bonds. The yields of these instruments are low compared to return from investments such as equities.
The year has been tough for the equities market. In such a situation, EPF dividend likely to be less than 5% for this year.
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