Which MPF is the best?
MPF Market Update Top 10 MPF Funds – 2021 Q3
|Rank||Fund Name||YTD return as of 30 September 2021|
|1||Manulife Global Select European Equity Fund||17.53%|
|2||Hang Seng SuperTrust Plus ValueChoice US Equity Fund||17.09%|
|3||HSBC SuperTrust Plus ValueChoice US Equity Fund||17.09%|
|4||Manulife Global Select North American Equity Fund||16.78%|
How do I choose an MPF fund?
Consider the below five steps to choosing MPF funds:
- Step 1 – Understand the types of funds.
- Step 2 – Decide the proportion of equities, bonds and other assets in your portfolio.
- Step 3 – Look at the risk level of the funds.
- Step 4 – Check the fees of the funds.
- Step 5 – Examine the performance of the funds.
Is MPF a good investment?
MPF investment enhances cost-effectiveness As a result, scheme members can access a much wider choice of investment products and diversify their investment, thus reducing risk and improving cost-effectiveness.
What is MPF Conservative fund?
An MPF conservative fund is a type of money market fund. It invests exclusively in Hong Kong-dollar assets, either in short-term bank deposits or short-term bonds. Even though an MPF conservative fund is considered a low-risk investment product, it is not principal-protected.
What is MPF default investment strategy?
What is MPF Default Investment Strategy (DIS)? The DIS is a ready-made investment arrangement that complies with the key principles of retirement investment. It addresses the concerns about the high fee levels of MPF funds and scheme members’ difficulties in making fund choices.
What is default investment strategy?
A. What is DIS? DIS is a ready-made investment arrangement mainly designed for those members who are not interested or do not wish to make a fund choice, and is also available as an investment choice itself, for members who find it suitable for their own circumstances.
Can I choose my own MPF provider?
Employee Choice Arrangement (ECA) allows employees to transfer the MPF derived from the employees’ mandatory contributions in their contribution accounts to an MPF scheme of their own choice once a year1.
How much is MPF in Hong Kong?
MPF Hong Kong contribution
|Monthly income||Employer MPF contribution||Employee MPF contribution|
|Under 7,100 HKD||5% of relevant income||Not required|
|7,100 – 30,000 HKD||5% of relevant income||5% of relevant income|
|30,000 HKD or more||1,500 HKD||1,500 HKD|
When can I withdraw my MPF?
least 60 years old
Withdrawal of MPF. Scheme members must be at least 60 years old and have ceased all employments and self-employments. They are required to make a statutory declaration that they have no intention of becoming employed or self-employed again. Scheme members may withdraw their MPF in a lump sum or by instalments.
How does MPF work in HK?
Both employees and employers can claim MPF Hong Kong contributions on their annual taxes. Employers can claim up to 15% of an employee’s annual salary. For most employees, the employer-required contribution is 5% of their salary, capped at 1,500 HKD for higher earners.
What is the return on money market funds?
Over time, common stocks have returned about 8% to 10% on average, including recessionary periods. By investing in a money market mutual fund, which may often yield just 2% or 3%, the investor may be missing out on an opportunity for a better rate of return.
What is a dis scheme?
The DIS is a ready-made MPF investment solution. It is made up of two mixed assets funds. Scheme members can choose to invest their MPF benefits according to the DIS if they find the DIS suits their personal needs. The launch of the DIS involves changes to the MPF legislation.
How do I change my MPF provider?
Three major steps to complete a transfer:
- Complete and submit the Employee Choice Arrangement – Transfer Election Form. You can download the Transfer Election Form or obtain one from any MPF Approved Trustee.
- Trustees buy/sell fund units.
- Make sure you receive the transfer documents.
Can I transfer my MPF?
The MPF derived from the employees’ mandatory contributions has to be transferred in one lump-sum. Employees cannot transfer the MPF derived from the employer’s mandatory contributions under current employment. Such MPF must be retained in the original scheme until cessation of employment.
How much should I pay for MPF?
Employees and employers are both required to make mandatory contributions of 5% of the employee’s relevant income into the employee’s MPF account, subject to the minimum and maximum relevant income levels. Employers must make mandatory contributions for their employees with their own funds.
Do you pay tax on MPF?
A: Initial or special contributions by employer to the MPF scheme are deductible under Profits Tax at an even rate over 5 years commencing in the year of payment.
What is the retirement age in HK?
65 years old
A Retirement Fund Officially, Hong Kong retirement age is at 65 years old. But the standard practice is to retire early at the age of 60 years old. Since the year 2000, Hong Kong has made it compulsory for employers and employees to contribute to the Mandatory Provident Fund (MPF).
How much is MPF HK?
Can you lose money in a money market fund?
Because money market funds are investments and not savings accounts, there’s no guarantee on earnings and there’s even the possibility you might lose money.
Which are the top MPF categories to invest in May?
Europe, Japan and Hong Kong equities are the top MPF categories in May. Europe, Japan and Hong Kong equities are playing catch-up year-to-date, generating strong performance in the MPFs too.
How good are the Hong Kong equity MPFS?
With US$ 24 billion under management, the Hong Kong equity MPFs make up the largest category as of the end of last month. However, its three-year performance was merely better than money market and bond portfolios offered in the scheme.
Is past performance of a fund indicative of future performance?
Investment involves risks and past performance is not indicative of future performance. Investment decision should not be solely based on the fund performance. Other factors (e.g. fund’s investment objective, fees and charges, fund risk level, service level) should also be considered.