As I'm considering taking HDB loan to conserve cash, I'm planning to invest my CPF of about $40k each for me and my spouse in UOB SGD fund Class A to prevent it from being wiped out and compensate for the higher interest of HDB loan. Being concentrated on a single asset class, I have to consider the worst case scenario. As the fund consists of short term investment grade bonds, there should not be capital loss for an investment horizon of 2-3 years (the underlying bonds would have matured with bankruptcy of the companies highly unlikely). Are there other unknown risks that I should be aware of if I choose this option? Would like to hear your views. Hope the discussion can focus on the above and not if I should take bank or hdb loan.