Overview of MPF funds

Fund Type Fund Name Other Name(s) Investment Objective Investment Instrument Risk Level Potential Risk Fees & Charges Feature / Point to Note More Suitable for... 
Money Market Fund and Others  MPF Conservative Fund   To earn a rate of return similar to the Hong Kong Dollar savings rate Short-term bank deposits and short-term bonds Relatively low Fluctuations in interest rates No administrative fees can be charged by trustees if the fund return in a particular month is lower than the MPFA's prescribed savings rate for that month
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All MPF schemes are required to offer an MPF Conservative Fund
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MPF Conservative Fund is a low-risk fund, but its return may not beat inflation
Conservative, risk averse scheme members, or those who are about to retire
Money Market Fund Cash Fund To earn a rate of return comparatively higher than that of bank deposits or short-term certificates of deposit Short-term interest bearing money market instruments such as short-term bank deposits, government bills or commercial papers Relatively low Fluctuations in interest rates and exchange rates In general, it is charged as a percentage of the fund's net asset value
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The nature of money market fund is relatively stable which can be used to manage cash that is not currently invested, while earning income generated through interest

People who are close to retirement, or low-risk bearers
Guaranteed Fund Guaranteed Fund   To provide a guarantee on the capital invested, or to achieve a guaranteed rate of return Bonds, stocks or short-term interest bearing money market instruments Relatively low (but also depends on the guarantee conditions) Guaranteed rate of return may be modified or even cancelled with prior notice The guarantor usually charges a guarantee fee or reserve fee in addition to the basic fees and charges similar to other MPF funds
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There are two major types of guarantees, i.e. capital guarantee and return guarantee
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To enjoy the guarantee, all guarantee conditions such as minimum investment period and withdrawal requirements must be met (Scheme members who intend to invest in this type of fund must read the terms and conditions of the fund carefully)
Risk averse scheme members, or those who are about to retire, and are willing to abide by the guarantee conditions until retirement
Bond Fund Bond Fund Fixed income  Fund To earn stable income from interest and coupon rate and make profits from bond trading Bonds Low to medium Fluctuations in interest rates, exchange rates and credit ratings of bonds In general, it is charged as a percentage of the fund's net asset value
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The bonds must meet the minimum credit rating prescribed by the MPFA or listing requirements
Moderately conservative scheme members with low risk appetite, and those seeking stable returns over the medium-to-long term
Mixed Assets Fund Mixed Assets Fund Stable Fund, Balanced Fund, Life-cycle Fund To achieve capital appreciation over the medium-to-long term Stocks and bonds Medium to high Volatility of stock markets, fluctuations in interest rates, exchange rates and credit ratings of bonds In general, it is charged as a percentage of the fund's net asset value
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Different mixed assets funds have different proportions of stocks and bonds. In general, a higher proportion of stocks is associated with a higher risk
For young as well as senior scheme members. They may adjust the proportion of stocks to bonds in their portfolios at different life stages
Equity Fund Equity Fund Growth Fund To achieve capital appreciation and a return higher than inflation over the long term Stocks Relatively high Volatility of stock markets, fluctuations in exchange rates and the overall condition of listed companies In general, it is charged as a percentage of the fund's net asset value
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There are usually three types of equity fund, i.e. funds investing in a single market, regional markets or global markets
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They mainly invest in stocks listed on stock exchanges approved by the MPFA

 
Young scheme members with a longer investment horizon and a higher risk tolerance level, as well as aggressive scheme members
Others Index Fund   To earn a rate of return similar to that of the market index that the fund replicates

For example: stocks

( the fund's investment portfolio follows the weightings of the constituent stocks of the market index that it replicates )

Medium to high Volatility of the stock market that the fund replicates As the constituent stocks of the relevant index are bought and sold within the fund in accordance with their respective weightings in the index, this would result in less frequent trading which translates to lower fees & charges than other funds
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The investment of the fund is limited to the constituent stocks of the market index that it replicates, so its performance is largely in line with the underlying market index