Should I invest my CPF special account in the Growth Fund?

Mr Tan,

Would you advise a 30 year old professional to invest in NTUC Growth Fund with CPF SA even though money in the SA is guaranteed 4% interest per annum?

PL

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My reply:

At this time, when the stockmarket is high, I do not advise you to invest your special account (interest rate of 4% p.a.) in the Growth Fund (from NTUC Income). It is better to keep the money in the special account and wait for the market to correct to a more modest level.

It is all right to invest your ordinary account (interest rate at 2.5% p.a.) in the Growth Fund now, if you intend to keep for the long term.

Tan Kin Lian