While 2025 MPF equity funds shone with the GUM MPF Index rising 16.7% to 286.4 points, higher stock volatility concerns many members. For those seeking lower risk without sacrificing too much return, GUM Chief Investment Officer Christopher breaks down fixed income and mixed asset fund options for 2026.

Conservative but Beating Inflation in 2026?

Lower-risk MPF members may consider Asian Bond Funds within the fixed income category. These delivered around 6.8% in 2025. With markets expecting a dovish new Fed leadership and continued accommodative policies from major central banks, 2026 should remain supportive for bonds, lifting prices.

Top 3 MPF Asian Bond Funds in 2025

Performance was tight, separated by just 0.3%:

1. Principal MPF Scheme Series 800 — Principal Asian Bond Fund (Class N): 7.1%
2. MASS Mandatory Provident Fund Scheme — Asian Bond Fund: 7.0%
3. AIA MPF – Prime Value Choice — Asian Bond Fund: 6.8%

How Do Rate Cuts Affect MPF Bonds and Conservative Funds?

Rate cuts actually boost bond prices, so fixed income funds are expected to perform well in 2026.

Money market and MPF Conservative Funds will see returns pressured by falling rates, but their ultra-stability still makes them ideal cash substitutes for the most risk-averse members.

Seeking a Middle Ground? MPF Mixed Asset Funds

For balance between growth and protection, mixed asset funds combine stocks and bonds with varying allocations:

• Aggressive (80–100% equity): 23.7% return in 2025
• Conservative (20–40% equity): 10.8% return in 2025

For a hands-off approach, the MPF Default Investment Strategy (DIS) delivered around 14% in 2025. It automatically adjusts equity exposure by age, invests globally, has low fees, and is perfect for long-term holding.

Top 3 MPF Mixed Asset Schemes in 2025

1. Principal MPF – Simple Plan: 20.1%
2. Principal MPF – Smart Plan: 19.4%
3. Manulife RetireChoice (MPF) Scheme: 19.2%

Top 3 DIS Core Accumulation MPF Funds in 2025

1. Haitong MPF Retirement Fund — Haitong Core Accumulation Fund (Class A): 19.1%
2. YF Life – MASS Mandatory Provident Fund Scheme — Core Accumulation Fund: 16.1%
3. BCT Strategic MPF Scheme — Invesco Core Accumulation Fund (Class A): 16.0%

Summary

In 2025, fixed income and mixed asset funds provided steady returns for conservative members. With rate cuts continuing into 2026, these categories remain attractive—though the best choice depends on individual risk tolerance and regular portfolio reviews.

Ready for a personalised 2026 MPF plan? Contact GUM’s expert team today—we’ll tailor an investment strategy to keep your retirement savings growing steadily!