MPF Fees vs Returns: A Within-Category Comparison
As of 2026-09-30, in 12 of 17 categories with at least 8 eligible funds, the lowest-fee third had a higher median 5-year annualised return than the highest-fee third; 13 categories showed a negative fee–return rank correlation (Spearman). Past performance is not indicative of future results.
Results by category
| Category | n | Spearman ρ | Low-fee FER | Low-fee 5y | High-fee FER | High-fee 5y |
|---|---|---|---|---|---|---|
| Asia equity | 30 | 0.05 | 1.17% | +7.61% | 1.75% | +8.40% |
| MPF Conservative Fund | 29 | -0.66 | 0.75% | +2.27% | 1.00% | +2.02% |
| Mixed assets (61–80% equity) | 29 | -0.38 | 0.98% | +4.35% | 1.52% | +3.57% |
| Age 65 Plus Fund (DIS) | 28 | 0.58 | 0.74% | +0.44% | 0.82% | +0.84% |
| Core Accumulation Fund (DIS) | 28 | 0.42 | 0.77% | +6.07% | 0.81% | +6.96% |
| Hong Kong equity | 28 | -0.22 | 1.12% | -1.13% | 1.64% | -1.59% |
| Mixed assets (41–60% equity) | 24 | -0.25 | 1.01% | +2.02% | 1.64% | +1.90% |
| Mixed assets (21–40% equity) | 24 | -0.62 | 1.22% | +0.89% | 1.63% | +0.39% |
| Global equity | 23 | -0.50 | 0.93% | +10.67% | 1.66% | +9.21% |
| Global bond | 22 | -0.03 | 0.98% | -3.05% | 1.44% | -2.90% |
| Mixed assets (81–100% equity) | 21 | 0.15 | 1.23% | +6.02% | 1.66% | +6.17% |
| HK index tracking | 17 | -0.77 | 0.69% | +2.70% | 0.92% | +1.57% |
| Greater China equity | 15 | -0.38 | 1.08% | +4.80% | 1.83% | +4.27% |
| US equity | 12 | -0.16 | 0.82% | +11.55% | 1.50% | +11.34% |
| Other money market | 12 | -0.59 | 0.81% | +1.21% | 1.18% | +0.87% |
| Europe equity | 11 | -0.46 | 0.85% | +8.93% | 1.67% | +7.04% |
| China equity | 10 | -0.78 | 0.88% | +1.10% | 1.49% | -3.78% |
Method and limitations
Includes funds with an MPFA 5-year annualised return, an FER and ≥60 months of prices; each category is split into FER terciles and the lowest and highest are compared by median. 5-year returns are net of fees. Samples are small, share classes of the same fund count separately, FER is the latest financial-year figure, and mandates differ within categories. Results describe history up to 2026-09-30 only.
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Cite as: MPF Watch (mpfwatch.com), MPFA data as of 2026-09-30.
FAQ
Have lower-fee MPF funds returned more?
In 12 of 17 categories with enough funds, the lowest-fee third had a higher median 5-year return than the highest-fee third (as of 2026-09-30).
Why compare within categories?
Return differences between asset classes dwarf fee differences; comparing across categories would mix equity and conservative funds and mislead.
Does this mean low-fee funds are the right choice?
This study describes a historical relationship only and is not advice; fees are one factor among many.