MPF Investment

Fund Types And Features

Equity Fund

What is an equity fund?

An equity fund invests mainly in stocks listed on stock exchanges approved by the MPFA to achieve capital appreciation and a return higher than inflation over the long term.

Risk level

Equity funds generally carry higher risks than other types of funds. 

 

Returns may be affected by factors such as: 

  • the volatilities of stock markets and performance of individual stocks; and
  • fluctuations in exchange rates (if the fund invests in stocks traded in a foreign currency, the depreciation of that foreign currency will result in a drop in stock prices, leading to a drop in the price of the fund).

 

You should read the MPF Scheme Brochure carefully to understand the relevant risks.

MPF insight

Equity funds are frequently described in terms of geographical allocation: those investing in a single market (e.g. Hong Kong Equity Fund), regional market (e.g. Asia Equity Fund) or global market.