EPF declared 5.65% dividend for 2009

Few hours ago, the Employees Provident Fund (EPF, a.k.a. KWSP) has just declared the dividend  rate for financial year 2009 to be of 5.65%, which is considered higher than the expectation of most financial analysts and general public.

This is not too bad, compared to the low rate of 4.5% in FY 2008.

With this dividend rate, it seems that those who have withdrawn their EPF Account II savings to reduce their housing loan during 2009 might be regreted to do so, as the effective mortgage rate is generally lower than 5.65% in 2009, due to a lower BLR rate along the year.

Anyhow, this rate is still lower than my personal investment return rate in 2009, therefore I need not regrete to opt for 8% EPF contribution instead of 11% for year 2009-2010. You might have a clue of which shares I invested in by reading my Investment related articles here, particularly those written in 2009.

Also, this rate is lower than the return I got from the unit trusts I bought with MAAKL Mutual by using part of my EPF Account I savings. Begining from the month of June, I had made 3 such EPF withdrawals during 2009 to invest in unit trust funds in MAAKL Mutual.

Although the commission rate of buying unit trusts with EPF Account I withdrawal is set at 3%, I still find it pretty expensive, compared to the fees of buying share directly in KLSE through the stockbroker. Luckily it still provides a better return than the 5.65% of EPF, so seems like I have made a good try.

How about you? Are you happy with the 5.65% rate you got from EPF in 2009? Or not satisfied and demand for more?

Click here to read the official announcement from EPF, and the investment structure of EPF in 2009, etc.