MPF scheme research

An increasing number of employers choose Mandatory Provident Fund (MPF) plans with more funds as employees' knowledge of the saving scheme becomes more sophisticated, according to HSBC Insurance General Manager and Head of Employee Benefits Luzia Hung.

Hung said that at the beginning of the scheme, 85 percent of employers chose MPF plans with five funds, while currently 20 percent have shifted to plans with more fund choices.

However, she admitted that the prevalent trends seem to be for plans with less fund choice, but rather specialized management of allocation.

Also, employees are becoming more comfortable shouldering the risks in their MPF portfolio.

Hung said that in 2001, 40 percent of the total portfolio money went into capital-preservation funds, but the number has dwindled to less than 25 percent today.