There are a number of steps you need to consider when buying units in
MPF funds:
Your MPF contribution, which includes the contribution from both you and
your employer, will be sent to the trustee by your employer. If you
are a self-employed person, your contribution will be remitted to the
trustee on a monthly or yearly basis by you.
Your employer is required by law to give you monthly pay-records that
include your contribution information.
When the trustee receives your contribution, the trustee is required
by law to verify the total contribution amount with your employer or
you as a self-employed person. There may be time gap between the date
that your contribution is remitted and the date your contribution is
actually credited to your MPF account representing normal processing
time of your contribution. However, this should not be unreasonably
long.
When the verification process is completed, your contribution, together
with those of other employees, will be passed to the investment manager
for acquisition of fund units. Again, there may be time gap between
the date your contribution is credited to your account and the date
that the fund units are actually acquired (or redeemed/sold if you are
changing your allocation). This is primarily due to timing of the dealing
day for fund unit transaction. Often, fund unit transactions cannot
be carried out until the next dealing day after the investment manager
receives money from the trustee. However, as all MPF funds offer dealing
in fund units on a daily or weekly basis, the time gap should not be
unreasonably wide.
Some MPF schemes may charge a fee on your contribution, though the
majority of MPF schemes currently waive this fee. The scale and amount
of such fees have been fully disclosed in the Fee Table in the offering document of the
scheme.
