Investing my CPF Monies

Having some spare cash in my CPF-OA after setting aside the $20,000 that is not allowed to be invested, I decided to adopt a hybrid strategy.

After utilising all my allowable CPF-OA monies in stocks (i.e. 35% of the OA monies), the other 2 options that I'm looking at will be STI ETF and Unit Trusts. One can use 100% of the OA monies to purchase STI ETF and/or Unit Trusts (approved by CPF) after setting aside the first $20,000 in the OA.

STI ETF
This is a much simpler approach. However, the minimum cost is for 1 lot, thus costing at least $3200 at current prices. Therefore, I decided to hold on for this and wait for a correction before getting any. Furthermore, there is no means of dollar cost averaging for this presently unless one has the capacity to get several lots.

Unit Trusts
Although the many debates on the performance/returns of Unit Trusts compared to ETFs seemingly point to a conclusion of ETFs faring better than Unit Trusts, there isn't any affordable means of DCA for ETFs using CPF-OA at the moment. Furthermore, only the first $20,000 of the OA has an interest rate of additional 1% per annum (i.e. 3.5% per annum). The rest of the OA has an interest rate of 2.5% per annum. It's not hard to find an Unit Trust having an annualised return of 5 to 6% per annum. Thus, I decided to do a RSP of $200/month on Unit Trusts using my CPF-OA monies to leverage on the advantages of DCA.    

Yet the monthly CPF contributions will still allow my OA balance to grow and therefore serves as part of my opportunity funds in both stocks & STI ETF.