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MPF Education

Unit dealing

Unit acquisition

On each dealing day, you can acquire fund units at the unit offer price.

Unit offer price = net asset value per unit (“unit NAV”) + offer spread

A fund’s unit NAV is calculated each dealing day, while the offer spread (imposed by the service provider, i.e. the trustee or its investment manager, depending on their agreed-upon charging mechanism) is generally waived for most MPF schemes.

Unit redemption

On each dealing day, you can redeem your fund units at the unit bid price.

Unit bid price = unit NAV - bid spread

The bid spread is imposed by the service provider, i.e. the trustee or its investment manager, depending on their agreed-upon charging mechanism. Like the offer spread, this charge is generally waived for most MPF schemes.

Change of investment mandate of future contributions

Changing your investment mandate of future contributions allows you to set a new fund allocation instruction that affects only new contributions, while keeping the fund investment allocation of your existing accrued benefits intact.

For example, let’s say your existing investment mandate on 15 January is:
  • 30% Equity Fund A
  • 70% Bond Fund B
You place an instruction on 20 January to change your investment mandate of future contributions to the following three funds:
  • 10% Equity Fund A
  • 70% Bond Fund B
  • 20% MPF Conservative Fund C

  • Equity Fund A HK$3,000
  • Bond Fund B HK$7,000

On 5 February, you receive a HK$2,000 contribution for January from your employer.

This sum will be allocated according to your new investment mandate. So your fund acquisition for the January contribution is:
  • Equity Bund A HK$200
  • Bond Fund B HK$1,400
  • MPF Conservative Fund C HK$400

On 15 February, your new balance of fund investment is:
  • Equity Fund A HK$3,200
  • Bond Fund B HK$8,400
  • MPF Conservative Fund C HK$400
*For simplicity, the above example is based on the assumption that all fund prices remain constant throughout the quoted timeline. In reality, the balance of the fund investment of your existing accrued benefits may vary should the prices of the funds fluctuate.

Change of investment allocation of existing account balance

Change of investment allocation of existing account balance refers to redeeming the units in a constituent fund and investing the proceeds into another constituent fund, both within the same scheme. It involves two unit transactions, using the respective dealing mechanism described:
  1. redemption of units in the first constituent fund; and
  2. acquisition of units in the second constituent fund.
Some trustees may set a limit on how many times you may do fund switching per year. Your fund switching form and scheme’s offering document will have more detailed information.

Some MPF schemes offer one or two methods for switching your existing accrued benefits. These are:

(I) Fund switching changes the fund investment of your existing accrued benefits by redeeming all or part of your accrued benefits in one or more constituent funds (“switching out”) and investing the respective proceeds into one or more other constituent funds (“switching in”).

For example, assume the balance of the fund investment of your existing accrued benefits is as follows:
  • Equity Fund A HK$3,000
  • Bond Fund B HK$7,000
You place a switching instruction to:
  • Switch out all your Equity Fund A investments; and
  • Switch in all the relevant proceeds from the redemption of Equity Fund A equally to MPF Conservative Fund C and Bond Fund D.

  • Equity Fund A HK$0
  • Bond Fund B HK$7,000
  • MPF Conservative Fund HK$1,500
  • Bond Fund D HK$1,500

*For simplicity, the above example is based on the assumption that all fund prices remain constant before and after the asset switching instruction. In reality, the balance of the fund investment of your existing accrued benefits may vary should the prices of the funds fluctuate after the instruction.

(II) Rebalancing changes the fund investment of your existing accrued benefits according to a new fund allocation instruction. This instruction first redeems a portion of your existing accrued benefits and then reinvests them to achieve your desired mix of funds. It is a reorganizing of your accrued benefits by changing the balance in the resultant mix of constituent funds.

For example, assume that the balance of the fund investment of your existing accrued benefits is as follows:
  • Equity Fund A HK$ 3,000
  • Bond Fund B HK$ 7,000
You place a rebalancing instruction to change the fund investment of your existing accrued benefits to:
  • 80% Bond Fund B
  • 20% MPF Conservative Fund C


  • Equity Fund A HK$0
  • Bond Fund B HK$8,000
  • MPF Conservative Fund HK$2,000
*For simplicity, the above example is based on the assumption that all fund prices remain constant before and after the rebalancing instruction. In reality, the balance of the fund investment of your existing accrued benefits may vary should the prices of the funds fluctuate after the instruction.

Fund transfer

Fund transfer means you are transferring your accumulated MPF accrued benefits from one scheme to another scheme in the following circumstances:
  1. change of employment – you want to change to the MPF scheme of your new employer, if it's not the same scheme as your last employer;
  2. change of personal account - you want to move your MPF accrued benefits in a personal account of one scheme to another scheme of your own choice;
  3. employer changing scheme - you have to transfer your MPF accrued benefits to another MPF scheme because your employer decides to participate in that MPF scheme;
  4. employee changing scheme – your employer offers more than one MPF scheme and you wish to transfer your MPF accrued benefits to another MPF scheme offered by your employer; or
  5. self-employed person changing scheme - you are a self-employed person and you want to transfer your MPF accrued benefits to another scheme.
Your trustee, be it the original trustee (whose scheme you are transferring your MPF accrued benefits from) or the new trustee (whose scheme you are transferring your MPF accrued benefits into), will require you to follow some administrative procedures for their processing of the transfer.


1. The employee fills in Form P(M) and sends it to the new trustee;
2. The new trustee checks the information and sends it to the original trustee;
3. The original trustee then checks the information, redeems the fund units from the employee’s account and transfers the accrued benefits to the new trustee (the original trustee also issues the transfer statement to the employee);
4. The new trustee allocates the accrued benefits into constituent funds and issues transfer-in confirmation to the employee; and
5. The employee receives the transfer statement from the original trustee and the transfer-in confirmation from the new trustee.


After receiving a fund transfer request, the new trustee needs to verify the information (including whether you have enrolled in an MPF scheme of the new trustee, the name of the scheme and scheme number) before sending the information to the original trustee for verification. The original trustee will verify your information (e.g. notice of termination, if applicable) and redeem the fund units belonging to you in the old scheme. After that, the original trustee will transfer the proceeds of the redeemed accrued benefits to the new trustee. The new trustee will then acquire fund units in the new scheme according to the employee's instruction.

According to the law, the new trustee is required, as soon as practicable after receipt of a fund transfer request from a scheme member, to give written notice of the request to the original trustee. On the other hand, the law requires the original trustee to take all practicable steps to ensure that all the accrued benefits concerned are transferred within 30 days after being notified of the fund transfer request by the new trustee.

Fund withdrawal

Fund withdrawal means you are withdrawing your accrued benefits from your MPF scheme. You are only eligible to withdraw your accrued benefits under the following statutory conditions:
  1. attainment of age 65;
  2. early retirement at age 60 or above;
  3. death;
  4. permanent departure from Hong Kong;
  5. total incapacity;
  6. terminal illness; or
  7. small balance of your MPF account.

The fund unit redemption process for withdrawing your benefits is the same as the process used for a fund transfer. Please note that before the fund units are redeemed, it takes time for the trustee to verify your application and complete certain administrative procedures, including checking the identity of the applicant and relevant documents which prove that the applicant fulfils the condition for withdrawal. Also during the course of processing, the market may fluctuate and the final price of units redeemed may be higher or lower than that at the time you placed the withdrawal request.

Forward pricing

Forward pricing means the trading price, and hence your subscription units / redemption amount, will be calculated based on the net asset value of the fund when the market closes on the day (or the next trading day if the instruction was placed after the dealing cut-off time of that day) after you place your instruction. As such, it is impossible for trustees or scheme members to know the exact trading price of a fund at the time the instruction is placed.
  • Suppose you place a switching/redemption order in the morning of Day Two (before the dealing cut-off time of Day Two)
  • Only the fund price of Day One is available when you place the order on Day Two
 Day OneDay Two
Fund Price$8$10
  • The fund price for Day Two will be calculated after the relevant markets close on Day Two. Your switching/redemption order will be based on the fund price of Day Two (i.e. $10), instead of Day One (i.e. $8).

Last Revision Date: 23/07/2015