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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.
  • There are usually three types of Equity Funds: single market, regional market or global market.
  • They invest mainly in stocks listed on stock exchanges approved by the MPFA.
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.
  • Different Mixed Assets Funds have different proportions of stocks and bonds. In general, a greater proportion of stocks is associated with higher risk.
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.
  • The bonds must meet the minimum credit rating or listing requirements prescribed by the MPFA.
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market instruments Relatively low (but it also depends on whether the guarantee conditions can be met when the MPF is withdrawn) The guaranteed rate of return may be modified with prior notice; the credit risk of the related insurance company (if holding an insurance policy); guarantor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.
  • There are two major types of guarantees: capital guarantee or return guarantee.
  • To qualify for the guarantee, all guarantee conditions, such as minimum investment period and withdrawal requirements, must be met (scheme members must read the terms and conditions of the individual fund carefully).
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.
  • The law requires that all MPF schemes offer an MPF Conservative Fund.
  • MPF Conservative Funds are low-risk funds, but their return may not beat inflation and may even be negative.
  • MPF Conservative Funds are a type of Money Market Fund and are generally described as a Money Market Fund in the Fund Fact Sheet issued by trustees.
Conservative, risk averse scheme members, especially those close to retirement