Factors to consider when choosing an MPF scheme
1. Range and quality of services of trustees and their service providers
For more information about the services available under various MPF schemes, please contact the relevant trustees or refer to the Trustee Service Comparative Platform on MPFA’s website.
2. Sufficient choice and suitability of funds
When assessing an MPF scheme, it is far more important to consider the suitability of funds than the number of funds that are offered.
For more information about the funds offered by different MPF schemes, please contact the relevant trustees or refer to the MPF Fund Platform.
If a scheme member does not indicate any fund choice in the enrolment form for the MPF scheme, the contributions will be invested according to the Default Investment Strategy (DIS).
3. Fees and charges
Funds under MPF schemes are managed by professionals and thus incur fees and charges.
Different MPF schemes have different policies in levying management fees. Scheme members should also check for any other fees and charges, such as:
- joining fees; and/or
- annual fees; and/or
- transaction fees and charges deducted from scheme members’ accounts.
Key Scheme Information Documents and MPF Scheme Brochures
Trustees must provide Key Scheme Information Documents and MPF Scheme Brochures to persons who are considering joining an MPF scheme (including both potential scheme members and participating employers). The Key Scheme Information Document provides key information about an MPF scheme and the MPF Scheme Brochure provides details of an MPF scheme.
Key Scheme Information Documents and MPF Scheme Brochures can be obtained from trustees or downloaded from the Repository of MPF Scheme Documents on MPFA’s website. These documents are also available in most of the trustees’ company websites.