MPF comparison: fees, fund choice and trustee service — the three things to compare

Members can choose their own MPF trustee and scheme in several situations: handling accrued benefits after leaving a job, making special voluntary contributions, when the employer registers two or more schemes — and, once the Employee Choice Arrangement (the “MPF semi-portability”) takes effect, transferring the employee-contribution portion once a year. When choosing, compare three factors.

How do you compare MPF fees?

Look at the Fund Expense Ratio (FER) — and only compare like with like. MPF charges cover trust and management fees, administration, audit, legal and transaction costs, plus guarantee fees for guaranteed funds. Equity funds generally cost more than conservative funds because their managers do heavier research. Check the fee tables in scheme offering documents or the MPFA’s fee comparison platform.

What makes a fund choice “suitable”?

Like picking a restaurant — the menu has to suit your taste. Members should weigh whether a trustee’s fund range is diversified enough and whether it matches their investment objectives and risk tolerance.

What should you compare on trustee service?

Transparency and clarity of fund information, convenience of delivery channels, and staff service quality. Choosing the right trustee and scheme makes MPF investing far more effective.

When doing an MPF comparison, visit MPF fund comparison to see fees and fund performance across schemes side by side.