RMF for PVD
What is RMF for PVD
RMF (Retirement Mutual Fund) is a fund set up to receive the transfer of money from a PVD (Provident Fund) of a member whose membership has ended. Such investor has the opportunity to enhance his/her investment through investment
in various RMF funds with diverse investment policies while retaining tax benefits in accordance with the law which specifies that the investor must be less than 55 years of age and be a member of the fund for at least 5 consecutive years.
At present UOBAM offers 22 RMF for PVD funds including equity funds, fixed income funds, balanced funds and alternative asset funds.
What type of investor is RMF for PVD is suitable for?
If you are an investor who wishes to retain tax benefits according to the law but your membership in a provident fund has been terminated prior to conditions are met due to various reasons such as:
you have left your job
you are in between jobs
you have retired from your job
your employer has cancelled its welfare benefits
your employer has ceased its business
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The money transferred from a PVD will be separated from the normal account in an RMF which a new account will have to be opened in order to support the transfer of money from the specific PVD.
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The money transferred from a PVD is not considered a new investment in an RMF and will not affect or reduce the right to tax exemption from investment in RMF in the particular year.
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When money is transferred from a PVD to an RMF, such investment shall be held until the holder reaches 55 years of age and the membership in the PVD together with the holding of RMF shall not be less than 5 years in order to be eligible for capital gain tax exemption for this portion of investment on the date of exiting the fund.
Conditions for Transferring Money from PVD to RMF for PVD
Open a new fund account
In case of transferring money from a PVD to an RMF for PVD, the Unitholder shall open a new Fund Account by separating each employer (in case of transferring from PVDs of multiple employers). The Unitholder will receive a Unitholder ID starting with 999222 which can be used only for transactions relating to RMF for PVD and such account cannot be used to purchase units of other types of fund.
Purchasing RMF
Transfer of money from PVD to RMF for PVD shall be in full and to only one RMF for PVD fund.
Switching of Investment Units
Unitholders of RMF for PVD funds can switch investment units between RMF for PVD funds under the management of the Management Company only which the Management Company will notify the list of funds that can be switched to the Unitholders through its website.
Redemption of Investment Units
- In case a Unitholder holds units of only one RMF for PVD fund, such Unitholder must redeem in full, partial redemptions are not allowed.
- In case a Unitholder holds units of multiple RMF for PVD funds, such Unitholder must first switch all investment units to only one RMF for PVD fund then the Unitholder can redeem the investment units in full, partial redemptions are not allowed.
In case of Switching Investment Units Out to another Management Company
- Unitholder can switch RMF for PVD units under the management of the Management Company to RMFs for PVD under of another management company (Switching Out) which the Unitholder shall switch the full number of units held, partial transfers are not allowed. The Unitholder shall be responsible for the fee for switching to another management company according to the conditions for charging fees of each fund as specified in the fund’s prospectus.
- In case the Unitholder holds units of multiple RMF for PVD funds, such Unitholder shall switch all units to only one RMF for PVD fund under the management of the Management Company before switching all such units to another management company.