Do you know one in three Mandatory Provident Fund (MPF) accounts is invested in the Default Investment Strategy (DIS) or its underlying constituent funds*? DIS offers a simple and convenient investment solution, built on the core principles of retirement investing. The main purpose of DIS is to serve members who may not have the time or expertise to manage their MPF investment, and enables them to handle their MPF investment easily and wisely.

The Default Investment Strategy offers three main features:

• Capped fees: The management fees and recurrent out-of-pocket expenses are capped at 0.75% and 0.2% p.a. of the fund’s net asset value respectively. As all MPF schemes are now onboarded to the eMPF Platform, the cap on recurrent out-of-pocket expenses has been further lowered to 0.1%.
• Automatic reduction of investment risk according to members’ age: The DIS is composed of two mixed asset funds — the Core Accumulation Fund, which holds a higher proportion of high-risk assets, and the Age 65 Plus Fund, which emphasizes lower-risk investments. As members near retirement age, the system automatically shifts the allocation between these two funds, progressively reducing overall investment risk to effectively achieve de-risking objectives.
• DIS adopts a global diversification strategy to effectively manage market risks.

These three features form the core principles of retirement investing. With the DIS, scheme members can save significant time and effort, as they are not required to select individual funds or actively manage their portfolios — an advantage for those who are busy or less familiar with investing. However, opting for the DIS does not mean you can ignore your MPF entirely. The MPF represents a significant asset for every employee and serves as a long-term investment. No matter which funds you select, it is essential to manage them responsibly and review your portfolio regularly to ensure you are well-prepared for retirement.

^{*Source: Mandatory Provident Fund Schemes Statistical Digest, December 2025}