Detailed Profile of JJ Five
Fund Type |
Other Commonly Used Name(s) |
Investment Objective |
Investment Instruments |
Risk Level |
Major Risks |
Fees & Charges |
Features/Points to Note |
Potential Suitability |
---|---|---|---|---|---|---|---|---|
Equity Fund | - | To achieve capital appreciation and a return higher than inflation over the long term | Stocks | Relatively high | Stock market volatility, exchange rate fluctuation and the overall condition of listed companies | The fee is generally a percentage of the fund’s net asset value. |
|
Young scheme members with a longer investment horizon and a higher risk tolerance level; other risk tolerant scheme members |
Mixed Assets Fund | Stable Fund, Balanced Fund, Life-Cycle Fund, Growth Fund | To achieve capital appreciation over the long term through investing in a combination of stocks and bonds | Stocks and bonds | Medium to high | Stock market volatility, interest rate fluctuation, exchange rate fluctuation, and bond credit ratings | The fee is generally a percentage of the fund’s net asset value. |
|
Scheme members may adjust the proportion of stocks to bonds in their portfolios at different life stages. |
Bond Fund | Fixed Income Fund | To earn a stable income from interest and bond coupon rates, and make profits from bond trading | Bonds | Low to medium | Fluctuation in interest rates, exchange rates and bond credit ratings | The fee is generally a percentage of the fund’s net asset value. |
|
Moderately conservative scheme members with a low-risk appetite, and those seeking a stable return over the medium-to-long term |
Guaranteed Fund | - | To provide a guarantee on the capital invested, or to achieve a guaranteed rate of return | Bonds, stocks or short-term, interest- bearing, money market instruments | Relatively low (but it also depends on whether the guarantee conditions can be met when the MPF is withdrawn) | The guaranteed rate of return may be modified with prior notice; the credit risk of the related insurance company (if holding an insurance policy); guarantor risk | The guarantor usually charges a guarantee fee or reserve fee, in addition to the basic fees and charges typical of other MPF funds. |
|
Risk averse scheme members, especially those close to retirement who are willing to abide by the guarantee conditions |
MPF Conservative Fund | - | To earn a rate of return similar to the Hong Kong Dollar savings rate | Short-term bank deposits and short-term bonds | Relatively low | Fluctuation in interest rates | No administrative fees can be charged by trustees if the return in a particular month is lower than or equal to the MPFA’s prescribed savings rate for that month. |
|
Conservative, risk averse scheme members, especially those close to retirement |