MPF investment limits protect members, with 400-plus funds to choose from

Ah Chik bumps into former colleague Hon Gor at a wedding banquet. Hon Gor has contributed to the MPF for ten years but, with markets volatile and unsure what funds he’s in, fears his retirement savings could be “wiped out”. Ah Chik tells him not to worry too much.

What protects MPF investments?

Constituent funds face strict investment limits. Ah Chik explains the MPF is a key pillar of members’ retirement protection, so investment choices must be prudent first. To protect members, every constituent fund must be managed by an SFC-approved investment manager, and permitted investments face strict limits: no overly risky structured products or leverage, no concentrated bets on single securities, foreign currency capped below 70% of total assets, and limits on securities lending.

Is there much choice?

Over 400 funds on the market. The rules balance protection with choice: across the five MPF fund categories there are more than 400 funds, with the average scheme offering about ten spanning low to high risk.

Must you withdraw at 65?

No — you can leave it in a preserved account. Ah Chik reminds Hon Gor that members reaching 65 don’t have to take their accrued benefits; they can keep them in a preserved account and withdraw everything in one go when needed or when fund prices look right.

To explore funds across risk levels, visit MPF fund comparison.