“We mustn’t allow the individual to feel that they’re an expert in market timing. You’ve got to lock your money in for some defined period, and there has to be (an) incentive to not switch from one investment to another. There has to be that incentive to keep your money locked up in one account for the long term, because that is how superior long-term returns are earned.”In other words, the government has recognized that market timing is a major reason why Singaporean investors lost money in their CPFIS. Such losses impair our ability ......
Singapore’s Deputy Prime Minister, Tharman Shanmugaratnam, declared recently that the CPF Investment Scheme (CPFIS) is not fit for purpose. Over the past ten years, 45% of investors lost money and 80% of investors can’t even make the 2.5% benchmark given by the CPF Ordinary account. The Deputy Prime Minister had the following observation:
