Why Private Mandate is the Best Investment Choice for EPF or Cash

 

In the world of investments, there are various options available for investors, whether using funds from the Employees Provident Fund (EPF) or cash. One option that is gaining increasing attention is the Private Mandate. This article will discuss why Private Mandate can be the best choice for investment using EPF or cash funds.

What is a Private Mandate?

A Private Mandate is a form of customized investment management, where an investment portfolio is individually managed by professional investment managers based on the investor’s needs, goals, and risk profile. It offers a high level of personalization and provides investors with greater control over their investments compared to collective investment products like Unit Trusts.

Advantages of Private Mandate: Why is it the Best Choice?

1. Customized Investment Strategy

One of the main advantages of a Private Mandate is the ability to tailor the investment strategy according to individual needs and goals. Unlike Unit Trusts, which have a more general investment strategy for all investors, Private Mandates allow investors to set specific objectives, and the investment manager will manage the portfolio based on those objectives. This is particularly important for investors with unique financial goals or varying risk tolerances.

2. Greater Control

With a Private Mandate, investors have greater control over investment decisions. They can choose the types of assets, sectors, and geographies they wish to invest in. This provides investors with the flexibility to take advantage of specific market opportunities or avoid sectors they consider risky.

3. Potential for Higher Performance

Since a Private Mandate is actively managed by experienced investment managers, there is potential to achieve higher returns compared to passively managed investments. The investment manager constantly monitors the market and adjusts the portfolio to capitalize on emerging market trends.

4. Transparency and Detailed Reporting

Private Mandates offer a higher level of transparency with detailed reporting on investment performance. Investors receive regular reports, providing a clear view of how their money is being invested and the performance of assets within the portfolio. This enables investors to make more informed decisions about their investments.

5. Better Risk Management

With a Private Mandate, risk management can be tailored to the individual risk tolerance of the investor. Investment managers can employ various techniques to manage risk, including more strategic asset allocation, hedging, and other risk management approaches. This gives investors confidence that their investments are carefully managed to minimize potential losses.

Private Mandate Through EPF and Cash

The advantages of a Private Mandate can also be leveraged through investments using EPF funds. Through schemes like EPF i-Invest, investors can direct a portion of their EPF savings into a Private Mandate. This allows them to benefit from the advantages of a Private Mandate while enjoying the benefits of their retirement savings.

For cash investments, a Private Mandate offers even greater flexibility in managing investments. Without the restrictions that may be imposed by EPF funds, cash investors can fully leverage all aspects of the personalization and active management offered by a Private Mandate.

Conclusion: Why Choose Private Mandate?

Private Mandate is the best choice for investing using EPF or cash funds due to its ability to tailor the investment strategy to individual needs, provide greater control to the investor, offer potential for higher performance, and deliver better transparency and risk management. For investors who are serious about optimizing their investment returns while maintaining full control over their portfolio, Private Mandate is a highly worthwhile option to consider