Investing your CPF savings

Dear Mr. Tan,
Like many young Singapore couple, my wife and I plan to retrieve an amount of 20K from my CPF account for other investment before all our money in the CPF is wiped out by HDB for our HDB flat. Basically, the reason for doing this is to save our money for rainy day in case anything happen (i.e. retrenchment).

As we are not a high risk taker, we decided to just invest our money into unit trust. We met up with our insurance agent from AIA and he introduced us to these few AIA funds.

1) AIA Greater China Equity Fund 30%
2) AIA Regional Equity Fund 20%
3) AIA Regional Fixed Income Fund 50%

As such, we will appreciate your expert advice on the following:

1) Is this the right time for us to invest our money into unit trust?
2) Is unit trust the best option for us?
3) Is it advisable for us to invest onto AIA Company in view that they may be took over by other company soon.
4) Please advise if the three funds that our agent introduced to us is suitable for us?

REPLY
I normally advise people to invest in the STI ETF due to low charges. You can get most of the returns. Read the FAQ in my website.

If you buy an investment linked product from an insurance company, you should ask about the charges that are taken away from your investments. This is also explained in the FAQ.