MPF Investment

Fund Types And Features

What is a money market fund?

A money market fund generally invests in short-term, high quality interest bearing securities (e.g. short-term certificates of deposit, government papers or commercial papers) with the aim of earning an interest rate higher than that of savings deposits.

On average, investments in a money market fund are restricted to investment instruments of short maturity dates. As such, the risk is generally considered to be low.

 

For more information about the major types of MPF funds, please visit the thematic website on MPF investment education.

MPF conservative fund

An MPF conservative fund is a type of money market fund. It invests exclusively in Hong Kong-dollar assets, either in short-term bank deposits or short-term bonds.

 

Even though an MPF conservative fund is considered a low-risk investment product, it is not principal-protected.

Fees and charges:

  • Administrative expenses can only be charged when the returns of an MPF conservative fund for a given month exceed the monthly prescribed savings rate (PSR) published by MPFA.
  • If the returns of a conservative fund exceed the PSR in any one of the following 12 months, trustees can recoup uncollected administrative expenses to the extent of the excess returns.
  • Fees and charges can be deducted from the assets of the fund (fund level deduction) or from the members' account by way of unit deduction (member level deduction).
  • If the method of fund level deduction is adopted, the unit price/net asset value/fund performance quoted in the fund documentation have reflected the impact of fees and charges.
  • If the method of member level deduction is adopted, the unit price/net asset value/fund performance quoted in the fund documentation (except for the fund performance figures quoted in a fund fact sheet) do not reflect the impact of fees and charges.

For more information about the major types of MPF funds, please visit the thematic website on MPF investment education.