CPF Investment Scheme (CPFIS) — Complete Guide for Singapore Investors

CPF Investment Scheme (CPFIS) allows Singapore CPF members to invest their Ordinary Account (OA) and Special Account (SA) savings in a range of approved investment products — including Singapore stocks, REITs, ETFs, unit trusts, insurance products, and government bonds. CPFIS is an option, not a requirement; CPF members who do not invest simply earn the risk-free CPF interest rates (2.5% OA, 4.0% SA). This article is for informational purposes only and does not constitute financial advice.

CPFIS-OA vs CPFIS-SA

CPFIS operates in two distinct sub-schemes:

• CPFIS-OA (Ordinary Account): You can invest CPF OA monies above S$20,000 (the first S$20,000 must remain in OA, earning the base 2.5% + 1% extra interest on the first S$20,000). Investments allowed include Singapore stocks (SGX-listed equities), REITs, government bonds (T-bills, SGS), selected unit trusts, and endowment plans. The OA rate of 2.5% (effectively 3.5% on the first S$20,000 due to extra interest) is the benchmark your CPFIS-OA investments must beat.
• CPFIS-SA (Special Account): A more restricted investment option. You can only invest CPF SA monies above S$40,000. The investable universe is narrower — mainly lower-risk products like government bonds and selected unit trusts. Critically, most equities, REITs, and ETFs are not CPFIS-SA eligible. Given the SA earns 4.0% (effectively 5% on the first S$40,000 with extra interest), the bar to beat is very high — most financial advisors suggest leaving SA uninvested.

What Can You Invest In via CPFIS?

CPF Board publishes an approved investment list. As at Q1 2026, CPFIS-OA eligible products include:

• Singapore equities: Any SGX Mainboard stock — includes DBS, OCBC, UOB, Singtel, CapitaLand Integrated Commercial Trust, and all major S-REITs
• Government bonds: T-bills (6m/1yr), SGS bonds via primary auction or secondary market — currently yielding ~1.46–2.29%
• Unit trusts: CPF-approved unit trusts from fund houses on the CPF agent bank list (selected equity, balanced, and bond funds)
• ETFs: Only Nikko AM STI ETF (G3B) and SPDR STI ETF (ES3) are CPFIS-OA approved — no LSE-listed UCITS ETFs (CSPX/VWRA) are eligible
• Singapore REIT ETFs: Phillip SGX APAC Dividend Leaders REIT ETF (BYI) is CPFIS-OA eligible
• Endowment and investment-linked insurance plans: Various approved products from Prudential, AIA, Great Eastern

Note: Gold ETFs, overseas-listed ETFs (CSPX, VWRA), leveraged/inverse ETFs, and most single-country ETFs are not CPFIS eligible. Always verify on the CPF Board website before investing.

Eligible Brokers and Platforms

To invest CPFIS-OA via stocks and REITs, you must open a CPFIS-approved investment account:

• DBS Vickers: Full CPFIS brokerage, integrated with DBS banking
• OCBC Securities: CPFIS-OA trading via OCBC relationship
• Phillip Capital (FSMOne): Unit trusts and some stocks via CPFIS; FSMOne referral code for sign-up perks
• POEMS (Phillip): Full CPFIS equities brokerage

Note: moomoo, Tiger Brokers, and IBKR are not CPFIS-approved. Robo-advisors like Endowus and Syfe support CPF investing — Endowus is the largest CPFIS-OA robo-advisor in Singapore, offering managed portfolios using approved funds. Syfe also offers CPFIS-approved unit trust portfolios.

Is CPFIS Worth It?

This is the key question. CPF OA earns a guaranteed 2.5% per annum (3.5% on the first S$20,000 due to extra interest). For CPFIS to be worthwhile, your investments must consistently beat 2.5% (or 3.5%) after transaction costs, which includes: brokerage fees, custodian fees, fund management fees, and the risk of capital loss.

Historical data shows that many retail investors underperform the CPF OA rate via CPFIS-OA investing — not because the markets are bad, but because of poor timing, high fees, and panic-selling. An investor who bought CSPX (LSE-listed S&P 500 ETF) outperformed 2.5% substantially over 2010–2024 — but this required conviction through drawdowns.

Our detailed analysis in the CPF investment strategy guide covers when CPFIS makes sense: primarily for long-horizon investors (10+ years) with diversified equity exposure via approved STI or REIT ETFs, and the emotional discipline to not sell during market corrections. Use our retirement planning calculator to model CPF investment scenarios.

How to Start Investing via CPFIS

Steps to open a CPFIS-OA investment account:

• Log into CPF Online Services and check your investable amount (OA balance minus S$20,000)
• Open a CPFIS-OA investment account with an approved agent bank (DBS, OCBC, FSMOne/Phillip, or a robo-advisor like Endowus)
• Transfer the desired amount from your CPF OA to the CPFIS investment account — this is a one-way transfer; once invested, returns flow back to CPF OA on realisation
• Select and purchase approved investments within the account

All dividends, distributions, and sale proceeds from CPFIS-OA investments are credited back to your CPF OA (not paid in cash). This is an important difference from regular investing.

Common CPFIS Mistakes

• Ignoring the 2.5% opportunity cost: Every dollar in CPFIS that earns less than 2.5% is a mistake relative to leaving it in OA. Many investors miss this because they think “CPF money isn’t real money.”
• Buying unsuitable investments: High-risk stocks or thematic ETFs in CPFIS without a long investment horizon expose retirement savings to excessive volatility.
• Forgetting fees: Some unit trusts charge sales charges of 1.5–3% — these can significantly erode returns, especially for short holding periods. FSMOne waives sales charges for most CPF-approved funds.
• Selling during market corrections: Panic-selling a CPFIS-OA equity portfolio during a crash and returning funds to OA at a loss is the single biggest CPFIS return destroyer for retail investors.