MPF Investment

Investment Portfolios

If scheme members have not specified a fund choice on their enrolment forms, their trustees will invest their contributions automatically according to the Default Investment Strategy (DIS). Members can also choose to invest their MPF benefits either according to DIS or in individual funds under DIS.

Features of DIS

DIS is a ready-made investment solution, made up of two mixed assets funds, namely the Core Accumulation Fund (CAF) and the Age 65 Plus Fund (A65F).

DIS has three key features:

  1. automatic reduction of investment risk as members approach retirement age (automatic de-risking)
  2. fee caps
  3. global investment for risk diversification

If a scheme member chooses CAF and A65F as a standalone fund choice  (rather than as part of DIS), the member will still benefit from fee caps and globally diversified investment. However, automatic de-risking will not apply. For more information, please contact the relevant trustees.

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 Automatic reduction of investment risk according to members’ age

DIS uses two mixed assets funds. The two funds invest globally in different asset classes in different proportions in order to reduce investment risk.

  • Core Accumulation Fund (CAF) – About 60% of assets of the fund is invested in higher risk assets (mainly global equities), and the rest in lower risk assets (mainly global bonds). 
  • Age 65 Plus Fund (A65F) – About 20% of assets of the fund is invested in higher risk assets (mainly global equities), and the rest in lower risk assets (mainly global bonds).

If MPF benefits are invested according to DIS, trustees will automatically and gradually reduce the exposure to investment risk as a scheme member approaches retirement age (as illustrated below):


DIS automatically reduces the proportion of investments in higher risk assets as the scheme member approaches retirement age.
Below Age 50
From Age 50 to 64
Above Age 64
All contributions and transfer-in benefits in the member’s account are invested in CAF.
The MPF benefits invested in CAF are in the member’s account gradually reduced while those invested in A65F are gradually increased every year, until the member reaches the age of 64. 
All the MPF benefits in the member’s account are invested in A65F.

How does it work?

Once scheme members reach the age of 50, their trustee will automatically reduce their investments in CAF and increase their investments in A65F progressively. This will be done once a year according to the percentages set out in the table below.

De-risking Table 


The automatic de-risking is carried out on a member’s birthday*, from his/her 50th to 64th birthday.

Note: The proportions of investments in these two funds may vary due to changes in the fund prices after the trustee makes the adjustment. The percentages of the two funds are as those set out in the above table when the automatic de-risking is made but the percentages do not remain exactly the same throughout the year.

*If the member’s birthday falls on a non-working day, it will be extended to the next working day. For details of the timing of automatic de-risking, please refer to the MPF Scheme Brochure of individual schemes or contact the relevant trustees for enquiries.

For more information about the risks involved in investing in these two funds, please refer to the MPF Scheme Brochure.


CAF and A65F are mixed assets funds, neither capital nor returns are guaranteed. Given the volatilities that can occur in investment markets, especially in the short term, CAF and A65F are subject to pricing changes, both up or down.

Fee caps
Fees and expenses charged to an MPF fund can have a significant impact on its long-term returns. All other things being equal, when fees are lower, the fund will have better net returns.


DIS uses two mixed assets funds: CAF and A65F. The fees and expenses of the two funds are capped as follows:

For more information about fees and charges of CAF and A65F and the comparison of the fees and charges of all MPF funds, please visit the MPF Fund Platform.
Globally diversified investment
CAF and A65F, the two mixed assets funds used by DIS, adopt a diversified investment approach by investing in different asset classes in global markets. These asset classes include:

Learn more about the different types of MPF funds .

Why do investment risks need to be reduced as members get older?
Experts from the Organisation for Economic Co-operation and Development (OECD) recommend that younger scheme members consider taking on relatively more investment risk to achieve higher expected returns, as they have a relatively longer time horizon to ride out the ups and downs of the financial markets.


By contrast, scheme members who are closer to retirement typically have a relatively lower risk tolerance level, because they have less time to ride out fluctuations in the investment cycle and make up for any sharp drops in the value of their investments. Therefore, they should consider investment options that bring less investment risk.