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As at 30 November 2008, there are 38 MPF schemes in the market that provide an aggregate of 340 constituent funds. On average, scheme members can choose between about 8 types of funds within an MPF scheme.
The law requires all MPF schemes to offer at a minimum, a capital preservation fund (CPF) in each scheme. In order to meet the different risk tolerance levels of scheme members, all MPF schemes in the market provide other investment fund choices in addition to a CPF. The range of the funds on offer may go from low risk steady growth options, to higher risk (potentially) higher growth options.
The following types of funds are available in many MPF schemes:
Equity Fund
An equity fund primarily invests in stock (or shares) traded mainly on approved stock exchanges. It aims for a higher rate of return through capital appreciation over a period of time. However, stock markets can be volatile, and the risk of investing in an equity fund is generally higher than that in other types of funds.
Click here for an overview of the different types of MPF funds.
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