CPF Investment Scheme (CPFIS)
How CPFIS lets you invest CPF Ordinary and Special Account savings in the market — and the honest assessment of whether it actually makes sense.
The CPF Investment Scheme (CPFIS) allows Singapore Citizens and PRs to invest CPF OA and SA savings in approved instruments — SGX stocks, ETFs, unit trusts, and Singapore Government Securities — with the goal of potentially earning above CPF’s guaranteed rates (OA: 2.5% p.a., SA: 4.0% p.a.). CPFIS investing only makes sense if you can reliably beat these risk-free benchmarks after costs.
2.5% p.a. guaranteed
4.0% p.a. guaranteed
Above first S$20,000
Above first S$40,000
What Is the CPF Investment Scheme?
CPFIS was introduced by the CPF Board to give Singapore members the option to grow their CPF savings through market investments. Rather than leaving funds at government-set interest rates, members who believe they can generate superior risk-adjusted returns may invest in approved products.
CPFIS operates on a key principle: CPF is first a retirement safety net, not a speculation vehicle. Only approved products may be purchased, minimum balance requirements apply, and a Customer Knowledge Assessment (CKA) is required for complex products. A CPF Board study found many CPFIS members underperformed the risk-free CPF OA rate of 2.5% over the long term — leading to significant reforms and the upcoming lifecycle scheme. For more, see our CPF investment strategy guide.
CPFIS-OA vs CPFIS-SA: What Can You Invest?
| Feature | CPFIS-OA | CPFIS-SA |
|---|---|---|
| Rate foregone | 2.5% p.a. | 4.0% p.a. |
| Min balance stays | First S$20,000 in OA | First S$40,000 in SA |
| Can buy stocks? | Yes (SGX-listed) | No |
| Can buy ETFs? | Yes (approved list) | Limited |
The higher bar for CPFIS-SA (must beat 4% guaranteed) makes it very difficult to justify. Most Singapore financial planners advise maximising CPF SA before considering CPFIS-SA.
The New CPF Lifecycle Investment Scheme (2028)
In 2024, Singapore announced a major reform: a new lifecycle investment option targeting H1 2028 launch. CPF members will be able to allocate OA savings into age-appropriate target-date funds that automatically adjust allocation as the member ages — more equities when young, shifting to stable income assets near retirement.
Key features: automatic rebalancing (no active management needed), low-cost index fund pricing, and eligibility without a separate Customer Knowledge Assessment. This mirrors US 401(k) target-date funds and acknowledges that most members are better served by low-cost diversified allocation than picking individual stocks. Watch for official CPF Board announcements closer to the H1 2028 launch.
Is CPFIS Worth It? The Honest Assessment
CPFIS-OA is potentially worthwhile if you can consistently beat 2.5% p.a. after all costs (brokerage commissions, CPF Investment Account quarterly fees of ~S$2–S$2.50, fund management fees). Low-cost diversified ETFs via Endowus are the most defensible approach for most investors.
CPFIS-SA is very difficult to justify — you must beat a guaranteed 4% p.a. risk-free return. Unless you have high conviction in specific investments and a long time horizon, most financial advisors recommend leaving SA funds to compound at the guaranteed 4%. The new 2028 lifecycle scheme may change this calculus significantly for OA funds.
Frequently Asked Questions
Can I use CPFIS to invest in S-REITs?
What is a CPF Investment Account and do I need one?
What happens if my CPFIS investments lose money?
Can I use Endowus to invest my CPF OA via CPFIS?
Is CPFIS available to Permanent Residents?
Invest Your CPF OA Wisely
If you’re considering CPFIS, low-cost diversified platforms are your best starting point.