MPF Special Voluntary Contribution (SVC) is most flexible among all 3 types of voluntary contributions and members can take advantage of it as a low-cost investment vehicle to help achieve financial and retirement goals.  Unlike self-employed or employee’s mandatory contributions, you can deposit and withdraw from SVC anytime.

You can open a SVC account with any eligible MPF providers and make lump-sum contributions as low as $500 anytime or schedule monthly direct-debit contributions for as low as $300.

Unlike Tax-Deductible Contribution(TVC), members can withdraw SVC balance anytime (free withdrawal up to 4 times within a financial year and/or subject to a minimum withdrawal amount) according to own financial circumstances.

MPF providers offer a wide selection of funds with different investment objectives, market and risk/return profile to cater your needs.  Each MPF trustee offers default investment strategy(DIS) with fund choices and arrangement that provides a cap in fees, automatic reduction in investment risks according to member’s age and globally diversified investment strategy.

One of its major advantages over funds offered by banks and insurance companies is that SVC does not charge any subscription, redemption or switching fees nor does it have any bid-ask spread cost. Higher fund costs do not necessarily give you higher performance, on the contrary, lower costs leave more capital for appreciation and give better odds to outperform in the long term.

The current average fund expense ratio for MPF is 1.37% and the management fee for all discretionary investment strategy funds are all less than 1%.  Some providers will offer management fee discount in the form of unit rebate from time to time.

Under the mandate from MPFA and market competition, it is expected the average fund expense ratio will continue to trend downward in the long run.  Therefore SVC is definitely a low-fee financial instrument worthwhile for you to consider to help fulfil your financial and retirement goals.

Please contact us if you would like to learn more about the comparison among various providers.

Last update: 5 March 2024