Choosing the Right MPF Fund

The accrued benefits of your MPF fund depend on your investment choice. As a member in the workforce, how do you go about choosing an MPF fund that is just right for you? The first thing to do is to understand the characteristics of each type of funds. Currently, there are five different types of fund: Equity Fund, Mixed Assets Fund, Bond Fund, Guaranteed Fund, and MPF Conservative Fund. Below is a table showing their investment objectives, risk level and annualised return:

Latest MPF Performance (2026)

Strong performance continues in 2026, with MPF delivering robust returns for scheme members:

May 2026: MPF recorded a strong 2.90% return, pushing year-to-date returns to 7.22% – the best year-to-date performance since 2017.
June 2026: Despite a temporary setback with an average loss of HK$1,549 per person, year-to-date returns remain solid at 6.8%.
First Half 2026: Expected to deliver 5.16% return, ranking as the 8th best first-half performance on record.

Notably, equity funds and mixed assets funds remain the top performers, benefiting from the AI boom and Asian market growth.

Recent Performance Trend (2023-2025)

MPF has achieved positive returns for three consecutive years:

Year	Overall Net Return	Key Highlights
2025	16.5%	All fund types achieved positive returns
2024	8.6%	Steady growth across all categories
2023	3.4%	Recovery from market volatility

Source: MPF Authority, GUM, MPF Ratings

Types of MPF Funds

Types of Funds	Investment Objectives	Risk Level	Annualised Return (Dec 2000 – Mar 2026)
Equity Fund	Aim to have capital appreciation and a return higher than inflation over the long term	Relatively high	~4.8%
Mixed Assets Fund	Achieve capital appreciation over the long term by investing in a combination of stocks and bonds	Medium to high	~4.4%
Bond Fund	Earn a stable income from interest or bond coupon rates, and make a profit from bond trading	Low to medium	Varies
Guaranteed Fund	Provide guaranteed returns (subject to terms and conditions)	Low	Subject to terms
MPF Conservative Fund	Invest in quality short-term interest-bearing securities	Very low	~0.5-1.0%

Note: Past performance is not indicative of future results. Returns are for reference only.

Default Investment Strategy (DIS) Performance

DIS, launched in April 2017, has delivered impressive returns since its inception:

Core Accumulation Fund (CAF): Annualized return of 6.4% (Apr 2017 – Mar 2026)
Age 65 Plus Fund (A65F): Provides lower-risk investment for members aged 50 and above
Past 12 months (2024-2025): CAF returned 11.5%, significantly outperforming many actively managed funds

DIS is an excellent choice for members who prefer a “hands-off” approach, as it features automatic de-risking and low fees (management fee capped at 0.75% p.a.).

Choosing the Right Fund in 2026

When selecting an MPF fund in today’s market, consider the following:

Market Trends: AI and technology sectors are driving strong performance in equity funds. Asian markets, particularly Hong Kong and Mainland China, offer growth opportunities.
Risk Tolerance: With increased market volatility, ensure your fund choice aligns with your risk tolerance. Equity funds offer higher potential returns but come with higher risk.
Time Horizon: Younger members can afford to take more risk (higher equity allocation), while those nearing retirement should consider more conservative options or DIS.
Fees Matter: Compare management fees and expense ratios. DIS offers a low-cost alternative with fees capped at 0.75% p.a. for management and 0.2% p.a. for recurring expenses.
Diversification: Don’t put all your eggs in one basket. Consider a mix of equity, mixed assets, and bond funds to spread risk.

New Investment Options in 2026

The MPF market continues to evolve, offering new investment choices:

MPF ETFs: E Fund MPF ETF has been listed on the Hong Kong Stock Exchange, providing exposure to A-shares and Hong Kong equities with lower fees.
ESG Funds: More schemes now offer Environmental, Social, and Governance (ESG) focused funds for socially responsible investing.
Target Date Funds: These funds automatically adjust asset allocation based on your expected retirement date, similar to DIS but with more customization options.