When Will MPF Get Capital-Guaranteed Funds?

What is a capital-guaranteed fund?

A capital-guaranteed fund promises return of principal at maturity — for the most conservative investors. In 2011 a reader asked when such products would come; MPF already had guaranteed funds offering similar protection, with varying terms and fees.

What low-risk MPF options exist?

Guaranteed, conservative and bond funds are the low-risk choices. Guaranteed funds usually have lock-in periods and conditions for the guarantee; conservative funds aim to beat savings rates. Check terms and fees at MPF fund comparison before choosing.

Who suits guaranteed products?

Those near retirement who can’t stomach capital loss. But remember: guaranteed capital isn’t guaranteed returns — inflation erodes purchasing power; young workers going guaranteed too early may lose to inflation long-term.