Introduction
The Central Provident Fund (CPF) is a mandatory savings scheme for Singaporeans and Permanent Residents (PRs). It helps you save for your retirement, healthcare, and housing needs.
The CPF Investment Scheme (CPFIS) allows you to invest a portion of your CPF savings in various investment products, such as unit trusts, bonds, and shares. This can help you grow your savings faster and reach your financial goals sooner.
However, before you start investing your CPF savings, it’s important to assess your risk tolerance and investment knowledge. The CPFIS Self-Awareness Questionnaire can help you do this.
CPFIS Self-Awareness Questionnaire
The CPFIS Self-Awareness Questionnaire consists of 10 questions that will help you assess your risk tolerance and investment knowledge.
1. How comfortable are you with the risk of losing money?
- Not at all comfortable
- Somewhat comfortable
- Comfortable
- Very comfortable
2. How much do you know about investing?
- Nothing
- A little bit
- A fair amount
- A lot
3. How long do you plan to invest your money for?
- Less than 5 years
- 5-10 years
- 10-15 years
- More than 15 years
4. What are your financial goals?
- Retire early
- Buy a house
- Fund my children’s education
- Other
5. How much money do you have available to invest?
- Less than $5,000
- $5,000-$10,000
- $10,000-$20,000
- More than $20,000
6. Do you have any debts?
- Yes
- No
- If yes, how much do you owe?
7. Do you have any dependents?
- Yes
- No
- If yes, how many?
8. What is your age?
- Under 30
- 30-40
- 40-50
- Over 50
9. What is your occupation?
- Professional
- Manager
- Clerical
- Service
- Other
10. What is your annual income?
- Less than $50,000
- $50,000-$100,000
- $100,000-$200,000
- More than $200,000
Scoring the Questionnaire
Once you have answered all 10 questions, add up your scores for each question.
Question 1:
- Not at all comfortable = 1
- Somewhat comfortable = 2
- Comfortable = 3
- Very comfortable = 4
Question 2:
- Nothing = 1
- A little bit = 2
- A fair amount = 3
- A lot = 4
Question 3:
- Less than 5 years = 1
- 5-10 years = 2
- 10-15 years = 3
- More than 15 years = 4
Question 4-10:
- Yes = 1
- No = 0
Interpreting Your Score
Your total score will range from 10 to 40.
- 10-15: You are not ready to invest your CPF savings. You should focus on building your financial knowledge and emergency fund before you start investing.
- 16-25: You have some knowledge of investing and are comfortable with a moderate amount of risk. You may want to consider investing a small portion of your CPF savings in low-risk investment products.
- 26-35: You have a good understanding of investing and are comfortable with a higher level of risk. You may want to consider investing a larger portion of your CPF savings in a mix of investment products.
- 36-40: You are an experienced investor and are comfortable with a high level of risk. You may want to consider investing your CPF savings in a variety of investment products, including stocks and bonds.
Conclusion
The CPFIS Self-Awareness Questionnaire can help you assess your risk tolerance and investment knowledge. This information can help you make informed decisions about investing your CPF savings.
If you are not sure about your risk tolerance or investment knowledge, it is important to seek professional advice from a financial advisor.
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Are You Ready for the CPFIS in 2025? Take the Self-Awareness Quiz Now!
Tables
Table 1: CPFIS Risk Tolerance Profile
| Risk Tolerance | Score | Description |
|---|---|---|
| Low | 10-15 | Not comfortable with losing money, prefers to invest in low-risk products |
| Moderate | 16-25 | Comfortable with some risk, may invest in a mix of low-risk and medium-risk products |
| High | 26-35 | Comfortable with a higher level of risk, may invest in a variety of products, including stocks and bonds |
| Very High | 36-40 | Experienced investor, comfortable with a high level of risk, may invest in a variety of products, including alternative investments |
Table 2: CPFIS Investment Knowledge Profile
| Investment Knowledge | Score | Description |
|---|---|---|
| Beginner | 1-10 | Little or no knowledge of investing, may not be comfortable investing without professional advice |
| Intermediate | 11-20 | Some knowledge of investing, may be comfortable investing in a few low-risk products |
| Advanced | 21-30 | Good understanding of investing, may be comfortable investing in a variety of products |
| Expert | 31-40 | Experienced investor, has a deep understanding of investing, may be comfortable investing in a variety of products, including alternative investments |
Table 3: CPFIS Investment Goals Profile
| Investment Goals | Score | Description |
|---|---|---|
| Retirement | 1-10 | Saving for retirement, may invest in a mix of low-risk and medium-risk products |
| Homeownership | 11-20 | Saving for a down payment on a home, may invest in a mix of low-risk and medium-risk products |
| Education | 21-30 | Saving for children’s education, may invest in a mix of medium-risk and high-risk products |
| Other | 31-40 | Saving for other financial goals, such as a vacation or a new car, may invest in a mix of medium-risk and high-risk products |
Table 4: CPFIS Investment Horizon Profile
| Investment Horizon | Score | Description |
|---|---|---|
| Short-term | 1-5 | Investing for less than 5 years, may invest in low-risk products |
| Medium-term | 6-10 | Investing for 5-10 years, may invest in a mix of low-risk and medium-risk products |
| Long-term | 11-15 | Investing for 10-15 years, may invest in a mix of medium-risk and high-risk products |
| Very Long-term | 16-20 | Investing for more than 15 years, may invest in a variety of products, including stocks and bonds |
