| Fund Type |
Fund Name |
Other Name(s) |
Investment Objectives |
Investment Instrument |
Risk Level |
Potential Risks |
Fees & Charges |
Points to Note |
Others |
| Money Market Fund |
Capital Preservation Fund |
|
Produces a rate of return similar to the Hong Kong dollar savings rate |
Short-term bank deposit and short-term high quality debt securities |
Low |
Fluctuations of interest rate |
Administrative expenses can only be deducted from a CPF when the returns of the fund for the month exceed the monthly savings rate prescribed by the MPFA |
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Every MPF scheme is required by law to provide a CPF |
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CPF is a conservative and low-risk investment product, and its returns might not be able to beat inflation |
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More suitable for people who are close to retirement, or low-risk bearers |
| Money Market Fund |
Cash Fund |
Produces 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 |
Low |
Fluctuations of interest rate and exchange rate |
In general, 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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More suitable for people who are close to retirement, or low-risk bearers |
| Guaranteed Fund |
Guaranteed Fund |
|
Preserves the fund's capital, or guarantees a minimum rate of return |
Short-term interest bearing money market instruments, bonds and equities |
Low |
Guaranteed rate of return can be modified or even cancelled with advance notice |
Compared to other funds, in addition to basic fees & charges, the guarantor usually charges a guarantee fee or reserve fee for providing the guarantee |
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There are two broad types of guarantees: guarantee on the capital invested, or guarantee on a minimum rate of return
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Must fulfill the qualifying conditions such as minimum investment period or withdrawal requirements before you can enjoy the guarantee |
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Generally speaking, more suitable for low-risk bearers but they should consider if they can meet the qualifying conditions. (Scheme members should read carefully and fully understand the details of all qualifying conditions.) |
| Bond Fund |
Bond Fund |
Fixed-income Security Fund |
Produces stable income generated from recurrent interest earned from the underlying bonds or any profit earned from trading the bonds in the market |
Bonds |
Low to medium |
Fluctuations of interest rate and exchange rate, and credit ratings of bonds |
In general, as a percentage of the fund's net asset value |
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Must meet the minimum credit rating or listing requirements stipulated by the MPFA
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More suitable for investors who wish to earn a stable rate of return |
| Mixed Assets Fund |
Balanced Fund |
Stable Fund, Lifestyle Fund, Growth Fund |
Achieves capital appreciation in the medium to long term |
Bonds and equities |
Medium to high |
Volatility of stock markets, fluctuations of interest rate and exchange rate, and credit ratings of bonds |
In general, as a percentage of the fund's net asset value |
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Different mixed assets funds have different allocations of bonds and equities. Generally speaking, funds that have higher weightings of equities carry higher risks
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Investors can adjust the level of equity to suit their needs at different life stages |
| Equity Fund |
Equity Fund |
|
Achieves capital appreciation in the long term, and aims for a return higher than inflation |
Equities |
High |
Volatility of stock markets and fluctuations of exchange rate |
In general, as a percentage of the fund's net asset value |
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There are three types of equity fund: single market equity fund, regional equity fund and global equity fund
|
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Can only invest in stock (or shares) and most of them are listed on approved stock exchanges
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As equity funds aim to achieve capital appreciation over a long period of time, investors should not switch funds frequently because of short-term market fluctuations |
| Others |
Index Fund |
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Produces 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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