MPF Investment

Investment Portfolios

Changing Investment Portfolios

If a scheme member decides to transfer his/her MPF from the current scheme to another scheme, the member must do it via managing his/her MPF account.

 

If a scheme member decides to switch MPF funds within the same scheme, he/she can:

  1. change the investment portfolio of the existing account balance
  2. change the investment mandate for future contributions
  3. change both at the same time

Changing investment portfolio of the existing account balance


Changing the investment portfolio of the existing account balance involves redeeming units in a fund and investing the proceeds into another fund within the same scheme.

 

Some trustees may limit the number of times members may switch their funds per year. Please refer to the fund switching form and the MPF Scheme Brochure for details.

 

How to switch funds

 

Some MPF schemes offer one or two methods for switching funds. These are:

 

(I) Funds switching: This changes the existing MPF investment portfolios by redeeming all or part of the MPF in one or more funds (i.e. “switching out”) and investing the respective proceeds into one or more other funds (i.e. “switching in”).

 

Example

Assume the balance of the existing MPF investment portfolio is as follows:

  • Equity Fund A HK$3,000
  • Bond Fund B HK$7,000

A switching instruction is placed to:

  • switch out all investments in Equity Fund A; and
  • switch in all the relevant proceeds from the redemption of Equity Fund A equally to MPF Conservative Fund C and Bond Fund D.
     

*For simplicity, the above example is based on the assumption that all fund prices remain constant before and after the fund switching instruction. In reality, the balance of the existing MPF investment portfolio may vary should the prices of the funds change after the instruction.

(II) Rebalancing portfolios: This changes the existing MPF investment portfolios according to a new fund allocation instruction. This instruction first redeems a portion of the existing MPF and then reinvests the proceeds to achieve the desired mix of funds. It is a reorganizing of investment portfolios by changing the balance in the resultant mix of funds.


Example

Assume that the balance of the existing MPF investment portfolio is as follows:

  • Equity Fund A HK$ 3,000
  • Bond Fund B HK$ 7,000

A rebalancing instruction is placed to change the existing MPF investment portfolio to:

  • 80% Equity Fund A
  • 20% Bond Fund B


*For simplicity, the above example is based on the assumption that all fund prices remain constant before and after the rebalancing instruction. In reality, the balance of the existing MPF investment portfolio may vary should the prices of the funds change after the instruction.

Changing the investment mandate of future contributions

 

Changing the investment mandate of future contributions allows scheme members to set a new fund allocation instruction that affects only new contributions, while keeping the existing MPF investment allocation intact.


Example

Assume that the existing investment mandate on 15 January is:

  • 30% Equity Fund A
  • 70% Bond Fund B

An instruction is placed on 20 January to change the investment mandate of future contributions to the following three funds:

  • 10% Equity Fund A
  • 70% Bond Fund B
  • 20% MPF Conservative Fund C


*For simplicity, the above example is based on the assumption that all fund prices remain constant throughout the quoted timeline. In reality, the balance of the existing MPF investment portfolio may vary should the prices of the funds change.