Mixed-Asset vs Bond vs Guaranteed MPF Funds: What’s the Difference?

How do the three fund types differ?

A June 2010 iMoney column used a supermarket analogy: mixed-asset funds invest mainly in equities and bonds — the higher the equity share, the higher the risk, sitting between equity and bond funds; bond funds put at least 70% of assets in qualifying bonds, earning interest and trading gains with lower risk; guaranteed funds carry guarantee terms that demand careful reading, like the fine print on a stamp-redemption offer. To know a mixed-asset fund’s stock-bond split, read its fact sheet and offering documents — just as you’d read the strawberry box label.

What rules bind bond funds?

Bonds must meet MPF law’s minimum credit-rating or listing requirements, spanning government, quasi-public, corporate and multilateral issuers like the World Bank.

How to choose?

Match risk tolerance and time horizon; read guaranteed funds’ conditions (e.g. lock-ins) closely. Compare categories at MPF fund comparison.