| 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 |
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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 |
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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
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People who are close to retirement, or low-risk bearers |
| Guaranteed Fund |
Guaranteed Fund |
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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) |
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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
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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
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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
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Young scheme members with a longer investment horizon and a higher risk tolerance level, as well as aggressive scheme members |
| Others |
Index Fund |
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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 )
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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
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