Which MPF Scheme should I Choose?
When do I Need to Choose an MPF Scheme?
You are required to choose an MPF scheme in the following situations:
- When your employer has enrolled in two or more schemes for you to choose
- When you are a self-employed person
- When you want to make tax deductible voluntary contributions or special voluntary contributions
- When you cease to be employed and prefer your MPF benefits under your former employment to be managed under another MPF scheme
- When you want to exercise the right to transfer under the Employee Choice Arrangement
Factors to Consider when Choosing an MPF Scheme
Range and quality of services of trustees and their service providers
You may compare trustees’ services in these respects:
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For the range of services of the various MPF schemes offered by trustees, please check with trustees or refer to the Trustee Service Comparative Platform on the MPFA website.
Sufficient choice and suitability of funds
In assessing an MPF scheme, the suitability of funds (i.e. whether the funds suit your needs) is far more important than the range or number of funds that are offered.Fees and charges
The funds in MPF schemes are managed by professionals and thus incur fees and charges. Different MPF schemes have different fee policies. In general, they all levy management fees, but you should also check whether you are subject to other fees and charges, such as joining fees, annual fees, member account transaction fees and charges, etc.Fees and charges have an impact on the net return of a fund, but it is just one of the factors to consider. When you make comparisons, you must compare funds of the same type. Just as you should not compare apples with oranges, you cannot compare funds of different types.
To find out more, refer to the Fee Table in relevant MPF Scheme Brochure or the MPF Fund Platform on the MPFA website.
While some scheme members may try to choose an MPF scheme by looking at the scheme’s fund performance, you are reminded that past performance is not necessarily a guide to the future performance of an MPF fund. Scheme members should not make fund choice decisions based solely on short- or even medium-term historical performance. The MPF Fund Platform on the MPFA website also provide fund performance information for reference.