BCT adopts the fund-switching method to redeem part of or all of the MPF assets in one or more constituent funds (i.e. switch out) and then invest the redemption sum in one or more constituent funds (i.e. switch in) to change the investment portfolio of your existing MPF assets. For example, if you have the following amount of MPF assets accrued benefits derived from your fund investments:
Equity Fund: A $6,000
Bond Fund: B $4,000
You have made a fund-switching instruction as follows:
Switch all of A out; and
Split the redemption sum from A into 2 portions, and purchase C and D
* For simplicity in illustration, the above example is based on the assumption that all fund prices remain constant before and after the fund switching instruction. In reality, the balance of the fund investment of your existing MPF assets may vary should the prices of the funds fluctuate after the instruction.