Expenses on investment have a significant impact on returns. Hence, reducing Total Expense Ratio caps will lower the expenses that CPF investors have to bear and increase a fund's per-unit net asset value. This will enable CPF members who have invested in the fund to accumulate their retirement savings faster.

 

The following example illustrates the impact of expense ratio:

Amount invested: $10,000 over 30 years, with annual return of 5%¹

Total expense ratio of the Fund decreases from 1.95% to 1.75%

Savings = $1,475 (or 6% more in his retirement savings)