CPF has set out the new Total Expense Ratio caps for CPF Investment Scheme List A funds, giving CPFIS investors a concrete number to check before choosing a fund. The caps are 1.75% for higher-risk funds, 1.55% for medium-to-high-risk funds, 0.95% for low-to-medium-risk funds and 0.35% for lower-risk funds.
For ordinary CPF members, the practical point is that fees matter because CPF money is already earning risk-free interest in the account. Any CPFIS fund has to justify both its investment risk and its cost.
How To Read The Caps
A TER cap is not a recommendation. It is the maximum expense level allowed for CPFIS List A funds in that risk category. A fund can still be cheaper than the cap, and a cheaper fund is not automatically better if it does not fit your risk profile.
The caps are most useful as a comparison filter. If two funds have similar objectives and risk, cost becomes one of the clearest differences a retail investor can control.
Before Investing CPF Money
Compare the fund’s risk category, fees, historical volatility and whether you can tolerate losses. CPF’s Budget 2026 materials also point to a future life-cycle investment scheme in 2028, so members who do not want to actively pick funds may have another route later.
CPF members can check the TER cap table and CPF’s Budget 2026 investment explainer.
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