CPF Investment Scheme (CPFIS) Guide 2026: Grow Your CPF Beyond the Basic Rate

CPF Investment Scheme (CPFIS) is a scheme that allows Singaporeans to invest their CPF savings in various investment products to grow their retirement funds. With the basic CPF interest rate currently at 2.5% per annum for the Ordinary Account and 4% per annum for the Special and MediSave Accounts, many Singaporeans are looking for ways to grow their CPF savings beyond these rates. In this guide, we will explore the CPFIS scheme, its benefits and risks, and provide tips on how to get started.

Key Takeaway & Quick Answer

The CPF Investment Scheme (CPFIS) allows Singaporeans to invest their CPF savings in various investment products, including stocks, bonds, and unit trusts, to potentially earn higher returns than the basic CPF interest rate. With over S$1.5 billion in CPFIS investments as of 2025, and an average annual return of 5-7% for some investment products, CPFIS can be a viable option for those looking to grow their retirement funds. However, it's essential to understand the risks and fees associated with CPFIS investments, which can range from 0.5% to 2% per annum, and to carefully select investment products that align with your retirement goals and risk tolerance.

In this guide, you'll learn:

• How to get started with CPFIS and open a CPFIS account
• The benefits and risks of CPFIS investments, including the potential for higher returns and the risk of investment losses
• How to select the right investment products for your CPFIS portfolio, including stocks, bonds, and unit trusts
• Tips for managing your CPFIS investments and minimizing fees, including the importance of diversification and regular portfolio rebalancing
• How to use the MicroStocks.in search and analysis tool to find CPFIS-related stocks in Singapore, including filtering by market capitalization, dividend yield, and industry

⏱ Reading time: 15 minutes | Difficulty: Intermediate

What is CPFIS and Why It Matters in Singapore?

CPFIS is a scheme that allows Singaporeans to invest their CPF savings in various investment products to grow their retirement funds. The scheme was introduced in 1997 to provide CPF members with more investment options and to encourage them to take an active role in managing their retirement savings. With the basic CPF interest rate currently at 2.5% per annum for the Ordinary Account and 4% per annum for the Special and MediSave Accounts, many Singaporeans are looking for ways to grow their CPF savings beyond these rates. CPFIS can be a viable option for those looking to grow their retirement funds, but it's essential to understand the benefits and risks of CPFIS investments.

For example, let's consider a Singaporean who has S$100,000 in their CPF Ordinary Account and wants to invest it in a CPFIS-approved stock. If the stock earns an average annual return of 7%, the investor can potentially earn S$7,000 in returns over one year, compared to S$2,500 if they had left the money in their CPF account earning the basic interest rate.

How CPFIS Works — Step by Step

CPFIS allows you to invest your CPF Ordinary Account (OA) and Special Account (SA) savings in a range of investment products, including stocks, bonds, and unit trusts. To get started with CPFIS, you need to open a CPFIS account with a participating bank or financial institution. Here's a step-by-step guide on how to get started:

1. Check your eligibility: You need to have a minimum of S$20,000 in your CPF OA or SA to be eligible for CPFIS.
2. Open a CPFIS account: You can open a CPFIS account with a participating bank or financial institution.
3. Select your investment products: You can choose from a range of investment products, including stocks, bonds, and unit trusts.
4. Invest your CPF savings: You can invest your CPF OA or SA savings in your selected investment products.

For instance, if you want to invest S$10,000 from your CPF OA in a CPFIS-approved unit trust, you can log in to your CPFIS account online and select the unit trust from the list of available investment products. You can then confirm your investment and monitor its performance online.

CPFIS vs Other Investment Options

CPFIS is just one of the many investment options available to Singaporeans. Here's a comparison of CPFIS with other investment options:

As you can see, CPFIS offers potentially higher returns than fixed deposits, but with higher risks and fees. Unit trusts and stocks offer even higher returns, but with higher risks and fees.

Practical Strategy: How to Use MicroStocks.in Search Tool to Screen Stocks on SGX

MicroStocks.in provides a comprehensive database of SGX-listed stocks, including those that are approved for CPFIS investments. Here's a step-by-step guide on how to use the MicroStocks.in search tool to screen stocks on SGX:

1. Log in to MicroStocks.in: You can log in to MicroStocks.in using your username and password.
2. Select the SGX market: You can select the SGX market from the list of available markets.
3. Filter by CPFIS-approved stocks: You can filter the list of stocks by selecting only those that are approved for CPFIS investments.
4. Filter by other criteria: You can filter the list of stocks by other criteria, such as market capitalization, dividend yield, and industry.
5. View the results: You can view the results of your screen, including the stock prices, dividend yields, and other relevant information.

For example, if you want to screen for CPFIS-approved stocks with a market capitalization of over S$1 billion and a dividend yield of over 4%, you can use the MicroStocks.in search tool to filter the list of stocks and view the results.

Case Study: CPFIS in Action

Let's consider a case study of a Singaporean who invested S$50,000 in a CPFIS-approved unit trust. The unit trust earned an average annual return of 7% over 5 years, resulting in a total return of S$38,500. The investor's CPF savings grew from S$50,000 to S$88,500 over the 5-year period, representing a return of 77%.

Here's a breakdown of the investor's returns:

As you can see, the investor's CPF savings grew significantly over the 5-year period, thanks to the potentially higher returns offered by the CPFIS-approved unit trust.

Common Mistakes Singapore Investors Make with CPFIS

Here are some common mistakes that Singapore investors make with CPFIS:

1. Not understanding the risks: CPFIS investments can be risky, and investors need to understand the risks before investing.
2. Not diversifying their portfolio: Investors should diversify their portfolio by investing in a range of assets to minimize risk.
3. Not monitoring their investments: Investors should regularly monitor their investments to ensure that they are performing as expected.
4. Not seeking professional advice: Investors should seek professional advice before making investment decisions.
5. Not having a long-term perspective: CPFIS investments are long-term investments, and investors should have a long-term perspective when investing.

For example, if you invest S$10,000 in a CPFIS-approved stock without understanding the risks, you may end up losing some or all of your investment if the stock price falls. On the other hand, if you diversify your portfolio by investing in a range of assets, you can minimize your risk and potentially earn higher returns over the long term.

CPFIS in Different Market Conditions

CPFIS investments can perform differently in different market conditions. Here's a breakdown of how CPFIS investments can perform in different market conditions:

For instance, if you invest in a CPFIS-approved stock during a bull market, you may earn high returns as the stock price rises. On the other hand, if you invest in a CPFIS-approved bond during a bear market, you may earn low returns as the bond price falls.

Advanced Portfolio Construction Tips

Here are some advanced portfolio construction tips for CPFIS investors:

1. Diversify your portfolio: Investors should diversify their portfolio by investing in a range of assets to minimize risk.
2. Use a core-satellite approach: Investors can use a core-satellite approach to construct their portfolio, where they invest in a core portfolio of low-risk assets and a satellite portfolio of high-risk assets.
3. Use a dollar-cost averaging approach: Investors can use a dollar-cost averaging approach to invest in their CPFIS portfolio, where they invest a fixed amount of money at regular intervals regardless of the market conditions.
4. Monitor and adjust your portfolio: Investors should regularly monitor their portfolio and adjust it as needed to ensure that it remains aligned with their investment objectives and risk tolerance.

For example, if you want to construct a CPFIS portfolio with a core-satellite approach, you can invest 60% of your portfolio in a low-risk bond fund and 40% in a high-risk stock fund. You can then monitor your portfolio regularly and adjust it as needed to ensure that it remains aligned with your investment objectives and risk tolerance.

Key Takeaways

• CPFIS is a scheme that allows Singaporeans to invest their CPF savings in various investment products to grow their retirement funds.
• CPFIS offers potentially higher returns than the basic CPF interest rate, but with higher risks and fees.
• Investors should understand the risks and fees associated with CPFIS investments and diversify their portfolio to minimize risk.
• Investors should regularly monitor their investments and adjust their portfolio as needed to ensure that it remains aligned with their investment objectives and risk tolerance.
• MicroStocks.in provides a comprehensive database of SGX-listed stocks, including those that are approved for CPFIS investments.

Disclaimer

This content is for educational and informational purposes only and does not constitute investment advice from a registered financial advisor. Stock trading involves substantial risk of loss. Always conduct your own research and consult a qualified financial advisor before making investment decisions.