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How Does the DIS Differ from Choosing MPF Funds Yourself?

Mechanism compare: fee caps, when de-risking applies, and historical medians (MPFA + our data)

The Default Investment Strategy (DIS) is a standardised arrangement every MPF scheme must offer: a Core Accumulation Fund (~60% higher-risk assets) and an Age 65 Plus Fund (~20%). Management fees are capped at 0.75% p.a. and recurrent out-of-pocket expenses at 0.2% p.a. Automatic de-risking applies only when invested in the DIS as a whole — picking the CAF alone does not trigger it. 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.

Data as of 2026-09-30 CAF ~60% higher-risk A65 ~20% higher-risk Mgmt fee cap 0.75% p.a.

  1. Mechanics
  2. Fees & de-risk
  3. History
  4. Sources

COMPARE

DIS vs self-select: how the mechanics differ

Summarised from MPFA materials on the Default Investment Strategy. Confirm your own account against trustee / eMPF records.

Item Invested as DIS Self-selected funds
Structure CAF + Age 65 Plus (age-based mix) Member chooses one or more constituent funds and weights
Illustrative risk mix CAF ~60% higher-risk / 40% lower-risk; A65 ~20% / 80% Depends on chosen funds (equity, mixed, bond, conservative, etc.)
Automatic de-risking CAF→A65 each year from 50–64 (only when invested as DIS) Not triggered merely by holding CAF/A65 as self-selected funds
Statutory fee caps Mgmt fee 0.75% p.a.; recurrent out-of-pocket 0.2% p.a. Generally no equivalent statutory cap (see each fund’s published FER)
When it applies Default if no choice is made; members may also elect the DIS Member directs investment into named funds

FEES · DE-RISKING

Fee caps and age-based de-risking (when they apply)

  • DIS funds are subject to statutory fee caps (0.75% p.a. management fee; 0.2% p.a. recurrent out-of-pocket expenses).
  • Members invested via the DIS: 100% CAF before 50; annual shift to A65 from 50–64; fully in A65 from about age 64.
  • Self-selecting CAF or A65 as constituent funds does not start that annual reallocation.
  • Under self-select, fees, risk and regional exposures follow each fund’s offering document / factsheet.
Important: This page explains mechanism differences; it does not suggest joining, leaving or staying in the DIS, and does not say which path is “better”.

NEUTRAL PUBLIC DATA, NOT A RECOMMENDATION

DIS fund historical medians (as of 2026-09-30)

Equal-weight medians of DIS constituent funds in our classification — factual reference only. Past performance is not indicative of future results.

Core Accumulation Age 65 Plus
Funds2828
1y return median+9.73%+1.82%
5y ann. median+6.14%+0.66%
2022 median-16.49%-14.82%
Median max drawdown (2020-07 – 2026-09)-20.61%-16.61%
FER median0.78%0.79%

Historical contrast with mixed-asset categories of similar equity bands (not a ranking)

CAF holds ~60% higher-risk assets — shown next to “mixed assets (61–80% equity)”; A65 ~20% — next to “mixed assets (21–40% equity)”. Category definitions differ; figures are not a quality ranking.

Category n 1y med. 5y ann. med. FER 2022 MDD med.
Core Accumulation (DIS) 28 +9.73% +6.14% 0.78% -16.49% -20.61%
Mixed assets (61–80% equity) 29 +8.48% +4.18% 1.34% -16.74% -28.14%
Age 65 Plus (DIS) 28 +1.82% +0.66% 0.79% -14.82% -16.61%
Mixed assets (21–40% equity) 24 +2.48% +0.51% 1.33% -15.47% -22.29%
Important: Historical data for general information only — not investment advice or a recommendation of any fund, and it does not consider anyone's objectives or circumstances. Past performance is not indicative of future results; prices can go down as well as up. MPFA-published returns and fees are as of 2026-09-30; site-calculated metrics (annualised return, volatility, max drawdown) use month-end prices 2020-07 – 2026-09 and may contain errors or delays. Before any decision, read the trustee's offering documents and MPFA information, and consult a licensed or registered professional where appropriate. Full disclaimer · Methodology

Sources and related pages

Sources: MPFA · MPF Fund Platform

Important: This page is general educational information, not investment advice, and does not consider anyone’s circumstances. Not affiliated with the MPFA or any trustee; the operator is not a licensed intermediary. Figures are historical medians and are not a suggestion to join or leave the DIS. Full disclaimer

Published: 2026-11-02 · Site data refresh 2026-10-21 · Fund data as of 2026-09-30

FAQ

What is the main difference between the DIS and self-selecting funds?

The DIS is a default, standardised mix (CAF + Age 65 Plus) with statutory fee caps and automatic age-based de-risking when held as the DIS. Self-selecting means you choose funds and weights yourself; the same statutory fee caps and auto de-risking generally do not apply.

Does picking the Core Accumulation Fund alone de-risk automatically?

No. Per the MPFA, automatic de-risking applies only to members invested in the DIS as a whole; holding the CAF as a self-selected fund does not trigger the annual 50–64 reallocation.

What are the DIS fee caps?

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 median FER 0.78% for CAF and 0.79% for Age 65 Plus (as of 2026-09-30).

Will this site say whether members should join or leave the DIS?

No. This page only summarises mechanisms and historical figures as factual reference; it is not personal advice. For personalised views, consult a registered MPF intermediary.

Can historical returns predict the future?

No. Past performance is not indicative of future results. The tables only reflect published medians as of 2026-09-30.