What is the MPF Default Investment Strategy (DIS)?
The DIS is a standardised arrangement every MPF scheme must offer: a Core Accumulation Fund (~60% equities) and an Age 65 Plus Fund (~20% equities), with automatic de-risking from age 50. As of 2026-09-30, the median 5-year annualised return of 28 Core Accumulation Funds was +6.14%. Past performance is not indicative of future results.
At a glance
| Core Accumulation | Age 65 Plus | |
|---|---|---|
| Funds | 28 | 28 |
| 1y median | +9.73% | +1.82% |
| 5y p.a. median | +6.14% | +0.66% |
| 2022 median | -16.49% | -14.82% |
| Median max drawdown (2020-07 – 2026-09) | -20.61% | -16.61% |
| FER median | 0.78% | 0.79% |
Note: although the Age 65 Plus Fund holds fewer equities, it still fell noticeably in 2022 when stocks and bonds dropped together — bonds are not cash.
How de-risking works
Members invested via the DIS hold 100% in the Core Accumulation Fund before 50; from 50 to 64 the trustee moves a portion each year to the Age 65 Plus Fund; by 64 everything is in the Age 65 Plus Fund. This describes the general mechanism; check trustee documents for specifics.
DIS fund performance by scheme · MPFA website
FAQ
What is the Default Investment Strategy (DIS)?
Launched on 1 April 2017 and offered by every MPF scheme, the DIS is where contributions go if a member makes no investment choice. It uses a Core Accumulation Fund and an Age 65 Plus Fund and automatically reduces risk with age.
How do the two DIS funds differ?
The Core Accumulation Fund holds about 60% higher-risk assets (mainly equities) and 40% lower-risk assets; the Age 65 Plus Fund about 20% and 80%.
Does holding the Core Accumulation Fund de-risk automatically?
Not by itself. Automatic de-risking (CAF to Age 65 Plus Fund each year from 50 to 64) applies only to members invested in the DIS as a whole; picking the CAF as a standalone fund does not trigger it.
Are DIS fees capped?
Yes. By law, DIS fund management fees are capped at 0.75% p.a. and recurrent out-of-pocket expenses at 0.2% p.a. Our data shows a median CAF FER of 0.78% (as of 2026-09-30).