31st July 2026
Some funds grab all the attention. Others quietly get on with the job. And in 2026, the quiet one has been turning heads — MPFA’s mandated Default Investment Strategy (DIS) funds have scooped up roughly 40% of all net MPF inflows this year. That’s a serious chunk of money flowing toward a fund type that rarely gets the spotlight.
So, what’s going on? Let’s take a closer look.
Not the Flashiest — But Maybe the Smartest
Let’s be honest: DIS funds aren’t the “sexiest” option on the menu. They’re a ready-made investment solution built from two mixed-asset funds — the Core Accumulation Fund and the Age 65 Plus Fund. No fireworks, no fuss.
But behind that low-key personality sits a genuinely clever setup. The MPFA sums up its strengths neatly: automatic reduction of investment risk as you approach retirement (known as automatic de-risking), fee caps that keep costs in check, and global investment for proper diversification. Put those together, and you’ve got a package that quietly plays to a lot of strengths.
How the De-Risking Actually Works
Here’s the part that makes DIS tick. The two funds invest across global markets, but in different asset classes and different proportions to manage risk:
- Core Accumulation Fund (CAF) – About 60% sits in higher-risk assets (mainly global equities), with the rest in lower-risk assets (mainly global bonds).
- Age 65 Plus Fund (A65F) – About 20% goes into higher-risk assets (mainly global equities), with the rest in lower-risk assets (mainly global bonds).
The magic happens automatically. When your MPF is invested according to DIS, your exposure to risk gradually winds down as you get closer to retirement.
Once you hit age 50, your money in the CAF starts shifting into the A65F, bit by bit. This happens once a year, following a set schedule — so as you age, your investments quietly become more conservative without you lifting a finger. It’s a bit like having a co-pilot who eases off the throttle as you near the runway.
The Quiet Power of Lower Fees
Fees matter more than people think. They chip away at your returns over time, so keeping them low can make a real difference. This is one of DIS’s underrated perks — those built-in fee caps mean less of your money is eaten up along the way. As a rule of thumb, lower fees tend to leave more room for stronger returns.
And the diversified approach helps too. By spreading investments across different asset classes in global markets — bonds, equities, deposits, money market instruments and others permitted under MPF rules — DIS avoids putting all its eggs in one basket.
You Don’t Need the Biggest Scheme to Win with DIS
One of the best things about the Default Investment Strategy (DIS) is that its core structure is standardised across every MPF provider. That means you don’t have to chase the largest scheme to get solid, well-managed results. When we looked at how DIS funds have performed, a couple of names stood out — and neither of them is the biggest player on the block. What sets them apart is consistency, not scale.
YF Life’s MASS MPF Scheme has quietly delivered steady results across different time frames.
Its Core Accumulation Fund came 2nd in 1-year returns ( with a 15.79% return) and 3rd over the 3- and 5-year periods — a sign of reliable performance rather than a one-off spike. The fund is a Mixed Assets Fund (Global), holding around 65% in equities, with the remainder spread across global bonds, cash, and money market instruments. It also carries one of the lower management fees at 0.59% per annum of net asset value.
The scheme’s Age 65 Plus Fund also showed up well, landing 2nd in 1-month returns. Built for a more conservative stage of life, it keeps around 20% of net assets in higher-risk assets, with the balance in steadier, lower-risk holdings.
BCT’s Strategic MPF scheme, managed through Invesco, tells a similar.
The Invesco Core Accumulation Fund (Unit Class A) placed 3rd in 1-year returns (with a 15.78% return) and stepped up to 2nd over both the 3-year and 5-year periods. That upward consistency over longer horizons is exactly what most members want from a long-term retirement fund. It’s a Mixed Assets Fund (Global) with around 60% in equities and a maximum equity limit of 65%, balanced by bonds, cash, and money market instruments. The management fee sits at 0.75% per annum of net asset value.
Its Invesco Age 65 Plus Fund (Unit Class A) came 2nd in 3-year returns. Designed for stable growth, it holds around 20% in equities with a maximum equity cap of 25%, and shares the same 0.75% per annum management fee.
Both schemes prove a simple point: you can enjoy the full benefits of DIS without parking your savings in the market’s largest provider.
So, Is DIS One to Watch?
With automatic de-risking, capped fees, global diversification — it’s a thoughtful, hands-off approach that’s clearly resonating with investors in 2026.
DIS’ ease of use, diversification benefits and low fees speak for themselves, and so do the numbers. As always, it’s worth considering your own investment goals and risk tolerance — and speaking with a financial advisor to see whether this type of fund could be the right fit for you.
Note: The data presented in this article reflects the status as of June 2026.
The information contained in this blog is not advice, it is for educational purposes, general in nature and does not take into account personal situations. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.
