“Lazy fund” fees differ by 30% — do the maths before switching

With the Employee Choice Arrangement coming, many workers are considering switching plans. Take default funds (“lazy funds”): in the latest MPF fund fees comparison, Hang Seng’s Flexi-Plan charges a fund expense ratio about 30% higher than HSBC’s equivalent — compare fees carefully before moving.

How big is the gap?

Hang Seng’s Flexi-Plan FER runs about 30% above HSBC’s. Over a decades-long horizon, that difference compounds into a significant gap in final benefits.

Why do default funds matter?

Default funds are the landing spot for members who make no investment choice — covering huge numbers of people. Their fee levels directly shape long-term returns for the masses.

What to check before switching?

Beyond fees, compare fund choices, service quality and trustee track records. Note guaranteed funds have lock-in conditions — switching may forfeit guarantees, so check first.

When does the arrangement start?

The Employee Choice Arrangement is expected in the second half of next year, letting employees transfer the employee-contribution portion once a year. Start comparing plans now.

Compare plan fees at MPF fund comparison.