What is Default Investment Strategy (DIS)?

DIS is the Default Investment Strategy. It is a ready-made investment solution and its fees are capped. If you did not choose a fund on your form when you enrolled in the MPF scheme, your contributions will automatically be invested according to the DIS.

DIS uses two constituent funds: the Core Accumulation Fund (CAF) and the Age 65 Plus Fund (A65F). Both invest in global markets and across a range of asset classes. These include shares, bonds, money market instruments, deposits and other investments allowed under MPF law. This helps spread risk while giving you a potential return.

CAF invests around 60% in higher-risk assets, such as shares. It puts the other 40% in lower-risk assets, such as global bonds and money market instruments. A65F invests around 20% in higher-risk assets and 80% in lower-risk assets.

DIS automatically lowers your investment risk as you get older. As shown in the table below, all new contributions and accrued benefits of members under age 50 go to CAF. From age 50 to 63, your account automatically adjusts each year based on your age. The share in CAF goes down, while the share in A65F goes up. Once you reach 64, DIS invests all your accrued benefits in A65F.

Both CAF and A65F cap management fees at 0.75% of net asset value each year, measured daily. They also cap recurrent out-of-pocket expenses at 0.2% of net asset value.

DIS is mainly for scheme members who didn't make a valid investment choice when they joined the MPF scheme. However, you can choose DIS, or either of its two funds, as an investment option if it suits your personal needs.

By law, all MPF schemes must offer DIS as an option for members. You can compare DIS constituent funds from different providers. You can then decide if the performance, fees, goals and risks fit your fund investment strategy.