MPFA Default Investment Strategy 2026 Calculator

MPF Default Investment Strategy (DIS) is Hong Kong's age-based pension default — a glide-path approach using the Core Accumulation Fund (CAF) for members under 50 and the Age 65 Plus Fund (A65F) for older members. Required as the default option for every MPF scheme since April 2017.

How the DIS Glide Path Works

Under DIS, members under age 50 are 100% in CAF (~60% equities / 40% bonds, targeting growth). From age 50, each year automatically shifts 6.67% from CAF to A65F (~20% equities / 80% bonds). By age 64, members are 100% in A65F (stable, low-volatility). This de-risks holdings as retirement nears without requiring active member decisions. Funds rebalance once per year on the member's birthday.

DIS Fee Cap and Cost Advantage

DIS funds carry a regulated fee cap of 0.75% Management Fee + 0.20% recurrent out-of-pocket expenses — meaningfully cheaper than the average MPF fund (~1.5%). Over 30+ years, this fee differential compounds into hundreds of thousands of HK dollars. Members in non-DIS funds with high fees should compare their total expense ratio (TER) and consider switching to DIS or low-cost passive index funds available within their scheme.

When DIS May Not Be Optimal

DIS is conservative-by-default — appropriate for hands-off members. Active investors with higher risk tolerance may prefer 100% equity index funds during the entire accumulation phase. Conversely, members near retirement (age 60+) with significant non-MPF wealth may want more equity exposure than DIS provides. Switch is free and instant via the MPFA member portal. Source: MPFA Investment Education.