Is the MPF Conservative Fund Capital-Guaranteed?
Myth-bust: not capital-guaranteed, not a bank deposit; contrast with conditional guaranteed funds
No. MPF Conservative Funds invest mainly in HKD deposits and short-term debt; risk is typically lower, but there is no statutory capital guarantee and they are not bank deposits. Guaranteed funds carry a guarantor’s promise only under stated conditions (terms and charges vary by scheme). As of 2026-09-30, 0 of 29 conservative funds had a negative 2022 return; the median 5-year annualised return was +2.09%. Past performance is not indicative of future results.
Data as of 2026-09-30 Conservative n=29 Guaranteed n=9 2022 conservative negative 0/29
MYTH
“Conservative” is not “capital-guaranteed”
- “Conservative” describes a lower-volatility policy stance, not a statutory capital guarantee.
- Assets are mainly HKD deposits and short-term debt; mark-to-market, rates and fee mechanics can still produce a negative published return.
- It is not a bank deposit and is not protected as a bank deposit under the deposit protection scheme.
- Fee deduction rules are restricted by law and linked to the prescribed savings rate; FER/return figures may not be directly comparable with other funds.
COMPARE
Conservative fund vs guaranteed fund
| Item | MPF Conservative Fund | Guaranteed fund |
|---|---|---|
| Capital / return guarantee | None | Yes, only under offering-document conditions |
| Typical assets | HKD deposits, short-term debt | Varies (often bond / insurance-linked arrangements) |
| Extra charges | Fee deduction restricted by law | Usually a guarantee charge; see offering document |
| If conditions not met | N/A (no guarantee) | Guarantee may not apply; published returns can still be negative |
| Funds in our data (as of 2026-09-30） | 29 | 9 |
Guarantee conditions vary by fund; rely on the trustee offering document and MPFA materials.
NEUTRAL PUBLIC DATA, NOT A RECOMMENDATION
Historical medians at a glance
Category equal-weight medians for factual reference; full per-fund lists are on the conservative fund guide.
| Conservative | Guaranteed | |
|---|---|---|
| Funds | 29 | 9 |
| 1y return median | +1.86% | +0.01% |
| 5y ann. median | +2.09% | +0.11% |
| 2022 median | +0.32% | -6.77% |
| 2022 funds with negative return | 0 | 7 |
| Median max drawdown (2020-07 – 2026-09) | 0.00% | -18.13% |
| FER median | 0.89% | 1.92% |
Related pages
Conservative fund guide (full tables) Conservative category Guaranteed category DIS Lowest fees
Sources: MPFA · MPF Fund Platform
Published: 2026-11-02 · Site data refresh 2026-10-21 · Fund data as of 2026-09-30
FAQ
Is the MPF Conservative Fund capital-guaranteed?
No. It invests mainly in HKD deposits and short-term debt; there is no capital guarantee, and it is not a bank deposit or a deposit-insurance product.
How do conservative funds differ from guaranteed funds?
A guaranteed fund’s guarantor promises a guarantee only under conditions in the offering document (e.g. minimum holding period, withdrawal reasons) and usually charges a guarantee fee; if conditions are not met the guarantee may not apply. A conservative fund has no such guarantee. Our data has 9 guaranteed funds and 29 conservative funds.
Can a conservative fund post a negative return?
Structurally, yes. In our data, 0 of 29 conservative funds had a negative 2022 return; 1 had a negative 2021 return. Full tables are on the conservative fund guide.
Does “guaranteed” mean you cannot lose money?
Not necessarily. Guarantees are conditional; outside those conditions, published returns can still fall. 7 of 9 guaranteed funds in our data had a negative 2022 return (historical fact).
Will this site suggest switching into or out of conservative funds?
No. This page only clarifies the “capital guarantee” myth and lists historical figures; it is not personal advice.