PPRuNe Forums - View Single Post - EK Provident Fund: choices and why don't we have more?
Old 22nd Jul 2011, 16:41
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BYMONEK
 
Join Date: Jun 2004
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Keith

Would I be right to assume you've not met with Mondial yet? If so, why not give them a call. It's a free service to us that Emirates pays for. We get 2 free consultations per year. They've been extremely helpful and I make full use of them. They can advise on many issue, from the content of equity funds to explaining why the selection of funds are so limited for the A & B accounts. It's to do with risk aversion and statutory UAE End Of Service Benefits. It is in Emirates interest to have a conservative pension fund to avoid paying out twice, the money they put in each month (12%) which could be lost if the market bombs and then having to give you 1 month in each year of service as the risky fund is now worth less than this amount.

If you're after more risk and have spare cash, use the C fund. Dollar cost averaging is a great way to build wealth, especially in a volatile market such as the one we are in now. The best bit of all is that they're free. 1-3% can be the going rate for yearly fund management and over 15-20 years, that can add up to one hell of a cost saving overall.
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