Diversification

The key to reducing risk is diversification. This means spreading your investment across a mix of stocks, bonds and cash in different markets. Not all investments behave the same over a given period of time and therefore it may be possible that underperformance of one investment is offset by outperformance of another to smooth out your overall return.

You can achieve diversification through the funds offered by ING MPF Master Trust Schemes. All the funds are diversified portfolios of, depending on which particular fund(s) you choose, stocks, bonds and/or cash. Most of them spread the investments on a global basis to lower the risk and volatility of your investments.

Please refer to the Investment Options factsheet and Explanatory Memorandum for further information on the funds available.

Dollar Cost Averaging This is a method of accumulating assets by investing a fixed amount of dollars in a fund at regular intervals. The investor buys more units when the price is low and fewer units when the price is high. The overall cost is lower as compared with buying a constant number of units at regular intervals.

The following example illustrates how Dollar Cost Averaging works:

By way of making contributions on a monthly basis, the MPF structure has already had the benefits of Dollar Cost Averaging built in for you.

Investment involves risks and the prices of units may go down as well as up. Past performance is not indicative of future returns. Please refer to the Explanatory Memorandum for further details.