When you join an MPF scheme, you will have to make some choices about
which funds to invest in. Your trustee will provide you with a document
(generally called the document but there are other names such as prospectus,
principal brochure or explanatory memorandum) showing the details of all
the funds available in the scheme so you can make choices based on your
own investment preferences.
For example, you could allocate 50% of your contributions to an equity
fund A, and 50% to a bond fund B, and the trustee (the person in charge
of managing your MPF Scheme) will allocate units in each fund to you
accordingly. This is called your investment allocation.
Of course, you could place 100% of your contributions into just one
constituent fund, if you believe this is the right choice for you. Some
types of mixed assets funds automatically do the asset allocation for
you. The offering document will describe the asset allocation policy
for this type of fund.
If you subsequently want to change your investment allocation, you
can notify the trustee of your intended changes, and the trustee will
take you through all the necessary procedures to effect the changes.
