EPF Dividend For 2009
The Employees Provident Fund (EPF) declared 5.65 percent of dividend for the financial year ended December 2009. Compare to previous year, which is only 4.5 percent given.
EPF still having prudent portfolio with 72.53% of total investment was invested in fixed income instruments, 27.05% in equities and the remainder in property. As at Dec 31, 2009, EPF’s investment portfolio grew 8.55% or from RM342.01 billion in 2008 to RM371.26 billion in 2009.
As I mention before in my earlier post reasons for low EPF dividend, the main purpose of EPF is helping us to protect capital of our retirement fund and on the same time giving a small return as a hedge of inflation. Since EPF have lower percentage in equities, therefore the return of overall investment is not as large as aggressive investor where they put all their money in stock market. All in all, 2009 had been a good year for all investor including EPF.
The formula to calculate one’s dividend as given by the EPF website is beyond normal comprehensiveness. Do you have any examples to show the calculation properly, especially when one has withdrawn his Account 2 portion to reduce the mortgage loan?
[Reply]
Mrcoolku Reply:
March 7th, 2010 at 3:27 pm
I don’t no how exactly they did it but what I know is the higher the dividend, the better it is. For your request, maybe you can seek help at KWSP.
[Reply]
Do you think the dividend declared by EPF is enough to hedge our personal inflation? I doubt that.
[Reply]
Mrcoolku Reply:
March 9th, 2010 at 8:29 am
With just 5% plus, I also doubt on that. However, it do protect our retire fund being eat up by inflation.
[Reply]
Lai Seng Choy Reply:
March 10th, 2010 at 11:45 am
I think we should put in this way. Our EPF is actually still being eaten up by inflation but at a slower pace simply because our personal inflation rate is much higher than the dividend rate.
[Reply]
Kong Hui Reply:
April 28th, 2010 at 11:21 pm
Good comment.
We can’t control general inflation but can control our “personal inflation”. So, I still hang with my 13-year Proton even my income double from 5 years ago.
Mrcoolku Reply:
May 1st, 2010 at 7:29 am
You are smart cause you can double your income in just 5 years. I think still many out there which cannot double their income even after 10 years. Congratz!