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Comparison of MPF Scheme Service Providers

Employers need to make comparisons among Mandatory Provident Fund (MPF) providers and compare MPF returns when choosing a suitable scheme. By comparing MPF schemes via GUM, employers can have an overview of the returns offered by different providers and make comparisons of MPF management fees, promoting transparency of information. Employers should evaluate different MPF providers to enhance employee benefits and retirement financial well-being.
Employers choosing a suitable MPF scheme is important for enhancing employee benefits and retirement financial well-being.
Selecting the right MPF scheme is a critical decision where employers need to analyze and compare different MPF options to find the most suitable plan for their members. This involves comparing investment options, management fees, fund choices, and other aspects of different schemes.

The Three Major Types of MPF Schemes:

Three Main Categories of MPF Schemes

Master Trust Schemes

Master Trust Schemes are the most common type of MPF scheme. This scheme consolidates contributions from different employers and plan members for centralized management and investment, leveraging economies of scale. Any employer, employee, self-employed individual, or individual with a personal account or tax-deductible voluntary contribution account can participate in this scheme.

Employer-Sponsored Schemes

Employer-sponsored schemes are only applicable to a single employer and the employees of that employer's affiliated or associated companies. Under an employer-sponsored plan, individual accounts cannot be opened.

Industry Schemes

Industry Schemes are special schemes designed for temporary employees in the catering or construction industry (i.e., those employed on a daily basis or for less than 60 days). General employees in the catering or construction industry (i.e., non-temporary employees) can also participate in this scheme, with contribution calculated in the same manner as other general employees.
The Importance of MPF Scheme Comparison

The Importance of MPF Scheme Comparison

  • MPF Service Providers are responsible for managing investment portfolios, so the financial stability and reputation of the company are crucial. Comparing the financial status and reputation of different MPF Service Providers can help ensure appropriate protection for employees' retirement savings.
  • Different MPF Service Providers may have varying investment expertise and strategies. Selecting a company with a professional team and excellent fund managers after comparing MPF returns can impact employees' investment returns.
  • The quality of customer service provided by MPF Service Providers directly affects members' investment experience. Comparing different service providers' customer support, online platforms, and investment education resources can help employees choose a company that offers comprehensive support.
  • Different service providers may charge different levels of management fees. Comparing MPF management fees can help members choose the most cost-effective scheme and compare MPF returns.
  • MPF Service Providers may also offer different investment choices. Comparing different service providers' fund options ensures they align with members' investment needs.

Comparison of MPF Schemes and MPF Service Providers

When conducting comparison of MPF Schemes and service providers, employers should evaluate the following factors and seek advice from professional MPF consultants to ensure wise choices:

MPF Scheme Market Share

Market share reflects the asset management scale of an MPF service provider in the market. It indicates the influence and position of a service provider in the entire MPF industry. Service providers with higher market share usually have more resources and experience to provide more choices and services, while also being less likely to be acquired.

Fund Choices:

The selection of fund options is a crucial aspect for members to conduct MPF Service Providers comparison:

1. Risk Management

• Fund options allow members to diversify investments and conduct MPF Schemes comparison, which can spread risks and avoid “putting all eggs in one basket”. • Different funds have different risk levels, and investors can choose suitable funds based on their individual risk tolerance.

2. Achieving Investment Goals

• The chosen funds should reflect the returns and risk levels needed by investors to achieve their retirement goals. • Some funds are primarily designed to provide returns through capital appreciation, suitable for investors seeking long-term growth. Fund options are crucial in MPF Service Providers comparison.

MPF Return Comparison

• The performance of funds directly affects investors' returns. Understanding the past performance of funds can help investors make more informed investment decisions. Stable and excellent fund performance may lead to higher returns. The importance of MPF return comparison is that it not only helps you understand your own investment performance but also helps optimize your retirement investment strategy in multiple aspects. • When comparing MPF returns, it is also important to consider the corresponding risks and whether they align with individual investment goals and risk tolerance. It is recommended that investors regularly review and compare the returns of different MPF Schemes and make appropriate adjustments based on their financial situation and market changes. Professional investment advice and MPF scheme comparison can also be sought when making any investment decisions.

Comparison of MPF Management Fee

MPF management fees and charges can affect investment returns. Schemes with lower fees are usually more attractive to investors. Employers need to compare MPF management fees and understand the fee structure. MPF management fees and charges are an important factor in MPF scheme comparison.

1. Impact on Total Returns

• Higher management fees directly reduce investment returns, thereby decreasing the overall value of the account. • Even small fee differentials can have a significant impact on the total retirement savings amount over the long term.

2. Investment Options

• Different funds and management strategies may have different fee structures, which can affect investment choices and allocations. Generally, actively managed funds have higher fees (such as management fees, performance fees), while passive management (such as index funds) has lower fees.

3. Efficiency of Fund Utilization

• When selecting MPF products or funds, investors need to consider the balance between fees and expected returns. • By optimizing fee control, investors can ensure more efficient utilization of funds, thereby maximizing assets.
MPF Scheme Comparison Platform

GUM Services

For over 40 years, GUM has been rooted in Hong Kong, specializing in providing consultancy services for corporate MPF and employee benefits.
  • Whether for employers or employees, our professional MPF consultants provide reliable advice and tailored solutions through objective analysis, aiming to enhance overall employee benefits and MPF programs. We currently serve over 900 corporate clients, managing MPF assets exceeding HKD 10 billion and handling contributions of approximately HKD 1.2 billion annually, ensuring retirement security for their employees.
  • We compare the features of different plans for you, such as fund selection, management fees, and returns, to help investors quickly and comprehensively understand each plan. We provide investment advice and assist in making informed decisions.

Frequently Asked Questions about MPF Service Providers Comparison

1. What are the most important factors to consider when comparing MPF Schemes and MPF Service Providers?
2. How many investment options do different MPF Schemes offer?
3. Which asset classes can we invest in our MPF portfolio, and what are the options with different risk levels?
4. How can MPF returns be compared?
5. What is the historical performance of the GUM MPF Performance Index?
6. How can the risk of an MPF Scheme be evaluated?

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