The <a href="https://www.apple.com/apple-card/">Apple Card is out in the United States</a> in both physical and virtual versions.
The Apple Card trademark was recently registered in Hong Kong, suggesting the eventual launch of the much-hyped credit card in the area. But there’s no reason to wait if all you want is a virtual credit card! With the rise of virtual banks and the added benefits in security and convenience, virtual credit cards are becoming the new norm.
So what&#39;s so great about this new fintech product? We&#39;ve done the research for you so you don&#39;t have to!
<table>
<thead>
<tr>
<th></th>
<th>Physical Credit Card</th>
<th>Virtual Credit Card</th>
</tr>
</thead>
<tbody><tr>
<td>Application Procedure</td>
<td>Online / Walk-in</td>
<td>Online</td>
</tr>
<tr>
<td>Transaction Modes</td>
<td>Swipe / Contactless / Online</td>
<td>Contactless / Online</td>
</tr>
<tr>
<td>Security</td>
<td>Sensitive information embossed on card surface</td>
<td>Information stored and encrypted in phone</td>
</tr>
<tr>
<td>Cashback and Offers</td>
<td>Generally available. Depends on individual institutions</td>
<td>Generally available. Depends on individual institutions</td>
</tr>
</tbody></table>
<h2 id=""></h2>
<h2 id="physical-cards-replaced-with-virtual-cards-in-your-phone">Physical Cards Replaced With Virtual Cards In Your Phone</h2>
As the name suggests, a virtual credit card lacks a physical presence that is the plastic currently sitting in your wallet. Instead, all vital information of a credit card is stored in your phone. With a phone that supports NFC (pretty much every smartphone post-iPhone 6), a virtual credit card functions identically to its physical counterpart except that you can’t swipe it. Rest assured that it is accepted in both physical (via contactless payment) and digital marketplaces, with cashback and offers from card issuers. But if they do the same thing, why bother switching at all?
<h2 id="card-info-concealed-for-safer-transactions">Card Info Concealed For Safer Transactions</h2>
With a physical credit card, your full name, card number, expiry date and security code are exposed every time you take your card out &#8211; potentially a security risk if you&#39;re handing your card to a shop attendant!
On the other hand, a virtual credit card’s information is for your eyes only. A physical transaction with a virtual credit card involves simply tapping your phone on the compatible card reader. No visible information, nothing to leak. For added security, some cards such as Apple Card even have the option to generate a one-time card number and security code, eliminating the risk of information being compromised.
For additional security, users can activate passcode and biometric authentication (e.g. fingerprint, facial and iris recognition) to stop malicious attempts even when the phone is lost. Reporting a lost virtual credit card is also easier than reporting a physical credit card.
<h2 id="faster-service-purely-online">Faster Service, Purely Online</h2>
Virtual credit cards are open for application, renewal and reporting online, but so are most physical cards. The biggest difference is how long it takes to receive the new card: a physical credit card arrives at your mailbox within a few days to a month; a virtual credit card is instantly available upon approval.
On the other hand, since the virtual card itself cannot be swiped, sometimes you will have to fall back on cold, hard cash at stores without a contactless card reader. That said, with mobile payment increasing in popularity, this will become less and less of a problem in the future.
<h2 id="hong-kongs-virtual-credit-card-options">Hong Kong’s Virtual Credit Card Options</h2>
At the moment, CNCBI Motion Credit Card and ICBC UnionPay Dual Currency Greater Bay Area Virtual Digital Credit Card are the two options on the market. 
The application and approval of the CNCBI card can be handled entirely on their dedicated mobile app, and the card supports Apple Pay, Google Pay and Octopus Card automatic top-up service; the ICBC card supports UnionPay and allows dual currency transactions (in HKD and RMB), fit for frequent Mainland-bound visitors. 
<h2 id="tip-physical-card-still-has-the-edge-on-offers">Tip: Physical Card Still Has The Edge On Offers</h2>
The virtual credit card market is at its early stage in Hong Kong. If you are looking for better cashback rates, flight mileage and welcome offers, physical cards are still king for now. For example, PrimeCredit EarnMORE UnionPay Diamond Credit Card offers 2% cash rebate for linked Octopus Card automatic top-up service. Apply for the card through Planto to earn an extra $300. While you can find more offers and options in physical credit cards right now, we’ll see the odds even out as more virtual banks and cards like the Apple Card join the party, sooner or later. 
Compare and find the right credit card for you: 

<credit-card-comparison-page language="en" creditcardtype="cash_rebate"></credit-card-comparison-page>


<h2 id="recommended-articles-for-you">Recommended Articles for You</h2>
<a href="https://www.planto.hk/en/blog/robo-advisor-compare-recommend">Robo-Advisors Comparison：Chloe by 8 Securities, Kristal.ai, Aqumon</a>
<a href="https://www.planto.hk/en/blog/credit-card-compare-recommend">The Best Credit Cards in Hong Kong</a>
<a href="https://www.planto.hk/en/blog/expense-tracking-budgeting-101">Budgeting with Planto</a>

The Apple Card is out in the United States in both physical and virtual versions. The Apple Card trademark was recently registered in Hong Kong, suggesting the eventual launch of the credit card.

A Guide to Virtual Credit Cards in Hong Kong

Budgets are an integral part of your personal finance but it doesn&#8217;t mean it has to be restrictive! We&#8217;re making it simple to budget with 3 main features: <a href="#goals">goals</a>, <a href="#spending-limits-by-category">spending limits by category</a> and <a href="#custom-budget-cycle">custom budget cycles</a>



<div style="height:40px" aria-hidden="true" class="wp-block-spacer"></div>



<h2 id="goals">1. Goals</h2>



A goal in Planto is simply achieving a certain amount in a period of time. For some, it could be a trip to Europe (e.g. $13,000 in 4 months). For others, it could be building up your net worth (e.g. $100,000 in 6 months).



As soon as you set a goal, Planto will build a basic budget for you, and if you attach your account to a goal, we&#8217;ll help you measure progress towards it.



Even if you don&#8217;t hit your budget for the month, you&#8217;ll still be making progress towards your goal!



<figure class="wp-block-image"><a href="https://d3p3a214b6u455.cloudfront.net/images/blog/SetGoals.jpg" target="_blank" rel="noreferrer noopener"><img src="https://d3p3a214b6u455.cloudfront.net/images/blog/SetGoals.jpg" alt="Set Goals"/></a></figure>



<div style="height:40px" aria-hidden="true" class="wp-block-spacer"></div>



<h2 id="spending-limits-by-category">2. Spending limits by category</h2>



In case you really need that extra push, you can also set budgets to control your spending for specific categories.



<ol><li>Just go to the Monitor tab</li><li>Click a category</li><li>Click the &#8230; in the top-right</li></ol>



And set a budget for that category! As you get closer to the limit, Planto will automatically notify you and keep you in check.



<figure class="wp-block-image"><a href="https://d3p3a214b6u455.cloudfront.net/images/blog/SetCategoryBudget.jpg" target="_blank" rel="noreferrer noopener"><img src="https://d3p3a214b6u455.cloudfront.net/images/blog/SetCategoryBudget.jpg" alt="Set Spending Limit"/></a></figure>



<div style="height:40px" aria-hidden="true" class="wp-block-spacer"></div>



<h2 id="custom-budget-cycle">3. Adjusting your budget&#8217;s start &amp; end date</h2>



Some people like to think about money in calendar months. Others prefer mid-month to mid-month, or payday to payday. You can choose which day you want the months in your budget to start.



Just head to the Profile section and choose &#8220;Adjust Budget Cycle&#8221; and choose when you want to start your budget!



<figure class="wp-block-image"><a href="https://d3p3a214b6u455.cloudfront.net/images/blog/SetBudgetCycle.jpg" target="_blank" rel="noreferrer noopener"><img src="https://d3p3a214b6u455.cloudfront.net/images/blog/SetBudgetCycle.jpg" alt="Adjust Budget Start &amp; End Date"/></a></figure>



We&#8217;re always working on new things and smarter ways to help you manage your money so if you have any suggestions for us, just reach out!



<next-steps-list lang="en">
 <next-steps-list-item type="content" link="https://www.planto.hk/en/blog/planto-tag-record-track-expense" title="[Planto 101] Using #Tags to create custom categories"></next-steps-list-item>
</next-steps-list>

Planto helps you budget with savings goals, spending limits and budget cycles. Whether you're saving up for a wedding or aiming to increase your net worth, we give you the tools you need to make it happen. It's powerful, simple and it makes Planto the only budgeting app you will need.

Budgeting with Planto

Historically, there&#8217;s been a couple of major ways you could invest your money: 
<ul>
<li>Do it yourself. Which means you would need to do tons of research into stocks, ETFs, bonds etc., figuring out which ones to buy, which brokerage to open an account with and more;</li>
<li>Buy mutual funds or an investment insurance where you would essentially pay an investment manager to do the same with fees that are often 2% or more!</li>
</ul>
However, this is changing. In recent years, there have been a few fintech startups which are trying to find a middle-ground in Hong Kong: Robo-Advisors.
Robo-advisors are computer programs that will collect some information about you e.g. your current financial situation, goals and risk appetite and use that to create a diverse portfolio of stocks, bonds and funds personalised for you. Once you put your money in, they will automatically invest it on your behalf and since there&#8217;s no human intervention, they can cut costs and make management fees much lower for the consumers!
This leaves us with a few questions: how do robo-advisors compare to human investment advisors? And how do you, as an investor, choose which robo-advisor to go for? 
We&#8217;ve done the hard work and looked into and interviewed the 3 major robo-advisors in Hong Kong; <a href="https://go.onelink.me/Oliv?pid=Planto&amp;c=Planto_Onelink_Chloe">Chloe by 8 Securities</a>, Kristal.ai and Aqumon to figure out how each one works, what their strengths are and how you can pick the best one for you.


<robo-advisor-page human_table="yes" language="en"></robo-advisor-page>


<h2 id="robo-advisor-faq">Robo-Advisor FAQ</h2>
<h3 id="what-are-the-advantages-of-robo-advisors">What are the advantages of robo-advisors?</h3>
<ul>
<li>They are available 24/7: You no longer have to arrange a session to talk to your portfolio manager. You can adjust your portfolio, deposit or withdraw at any point, 24 hours a day.</li>
<li>They have lower fees: Since it&#8217;s completely automated, the annual fees as well as the minimum required investments are lower, making them suitable for investors who don&#8217;t have a lot to invest.</li>
<li>It&#8217;s convenient: After the portfolio setup, everything is handled by the robo-advisor &#8211; you don&#8217;t have to think about the market trends or have any investment knowledge.</li>
<li>They stick to a consistent methodology: Since robo-advisors stick to their investment methodology, they are not affected by the day-to-day swings of the market and can avoid human errors.</li>
<li>Their portfolios are diversified: Robo-advisors build a portfolio that consists of multiple types of assets (e.g. stocks, bonds, cash) from different geographies which spreads out your risk and makes your portfolio more stable.</li>
</ul>
<h3 id="what-are-the-disadvantages-of-robo-advisors">What are the disadvantages of robo-advisors?</h3>
<ul>
<li>They lack empathy: Good human consultants would want to understand you and your fears before recommending you a portfolio. They also serve as someone to talk to if you have concerns about the market, etc. Robo-advisors just follow the investment plan.</li>
<li>They cannot guide you: Robo-advisors assume that the customer knows what they want &#8211; e.g. the goal they are setting for themselves, or how much risk they can bear. In reality, you may not truly understand how much risk you are willing to take or perhaps haven&#8217;t fully thought out when you would need your money or how much. This could result in a mis-match between the performance of the robo-advisor and expectations of the customer.</li>
<li>The process is extremely passive: This isn&#8217;t truly a disadvantage but because robo-advisors follow their investment methodology unfailingly, in the case of adverse events like political factors that affect the economy, the robo-advisor may not adjust its portfolios. Given the lack of empathy (see above!), it may be a bit scary to see your portfolio falling in value (even if it&#8217;s temporary!).</li>
</ul>
<h3 id="why-do-robo-advisors-use-etfs">Why do robo-advisors use ETFs?</h3>
ETFs（Exchange Traded Funds) refer to funds that are traded on the stock market that track an index. For example, The HK Tracker Fund (2800.HK) invests in all companies that exist on the Hang Seng Index (primarily blue chip) to simulate the performance of the entire index. The primary idea is: why invest in a single (just an example) banking stock where you take a lot of risk, when you can invest in ALL banking stocks at the same time for the same amount of effort. ETFs will have clear investment objectives (e.g. some are tracking the entire US stock market, some are only tracking high-quality bonds, etc.), are usually very liquid and can make diversification extremely easy which is why a lot of passive investors and robo-advisors prefer using them. 
<h3 id="are-robo-advisors-licensed">Are robo-advisors licensed?</h3>
Just like anyone else who offers investment advice on securities, robo-advisors are also licensed by the Securities and Futures Commission (SFC).
<h3 id="are-there-hidden-charges">Are there hidden charges?</h3>
Robo-advisors are usually transparent about their fees (it&#8217;s one of their advantages!) but it&#8217;s always good to know the details before you start investing. Just reach out to the robo-advisors&#8217; customer service if you have any specific questions.
<h3 id="what-kind-of-people-should-use-robo-advisors">What kind of people should use robo-advisors?</h3>
Robo-advisors are perfect for people who:
<ul>
<li>Don&#8217;t have the time or interest to research investments</li>
<li>People who are new to work-life and either don&#8217;t have enough money yet or aren&#8217;t sure how to start investing</li>
<li>People who just want a simpler way to invest!</li>
</ul>
<h3 id="can-robo-advisors-completely-replace-humans">Can robo-advisors completely replace humans?</h3>
Robo-advisors perform a slightly different role as human advisors. 
Robo-advisors are more about how to automate your investments cheaply and easily. In terms of performance, they&#8217;re still quite new so there isn&#8217;t enough data to accurately judge their performances.
Human advisors play a bigger role in helping you figure out what your financial goals and needs are, and to guide you on things you would eventually need to do. They also answer questions about big life decisions (from a financial perspective) e.g. how much should you save for your marriage or for your kids&#8217; education, etc. 
<h3 id="is-it-safe-to-invest-with-a-robo-advisor">Is it safe to invest with a robo-advisor?</h3>
Robo-advisors are safe because they are regulated by the Securities and Futures Commission (SFC). In order to log into your robo-advisory accounts and invest, you will need to input your username, password, one-time password (OTP) and biometric authentication. In essence, it is the same as using your online banking services.
<h3 id="what-happens-when-a-major-event-occurs-in-the-market-how-does-a-robo-advisor-respond">What happens when a major event occurs in the market? How does a robo-advisor respond?</h3>
Robo-advisors generally do not adjust their investments based on news reports directly. However, if a major event casts a longer-term market change, then the investment decisions of the robo-advisors may change.
<h3 id="do-robo-advisors-rebalance-your-portfolio-for-you？">Do robo-advisors rebalance your portfolio for you？</h3>
Kristal.ai told Planto that they will rebalance the portfolio every 6 months but the user will have to confirm if they want to do it. <a href="https://go.onelink.me/Oliv?pid=Planto&amp;c=Planto_Onelink_Chloe">Chloe by 8 Securities</a> refers to iFAST&#8217;s daily review of the portfolio health to decide if a portfolio is overly concentrated in a particular sector or country. Aqumon said it will only rebalance when a significant change occurs, so this is likely to be 2-3 times a year.
<h3 id="how-long-does-it-take-to-get-my-money-out-of-a-robo-advisor">How long does it take to get my money out of a robo-advisor?</h3>
It usually takes 2-3 days for money to be transferred from a robo-advisor back into your account.
<hr>
💡<a href="https://go.onelink.me/6yy3/4d696cd7">Want to track your investment performance easily? Download Planto now!</a>💡

Compare the 3 major robo-advisors in Hong Kong: Chloe by 8 Securities, Aqumon, Kristal.ai. We look at fees, minimum investment amounts and break down the advantages and disadvantages of each to help you pick the best one!

[Investing for Beginners] Robo-Advisors Comparison：Chloe by 8 Securities, Kristal.ai, Aqumon

Investing can be daunting and overwhelming to some, especially in Hong Kong where you need to invest in a minimum lot size for many stocks.
This can all be overcome with the right tools such as monthly stocks savings plans. 
The plan requires an investor to contribute a fixed amount of money (e.g. HK$3,000) on a monthly basis to invest in the stock of their choice with no restrictions on the minimum number of shares. When the price per share is low you buy more, when it&#39;s high you buy less. 
<h2 id="how-to-start-a-plan">How to Start a Plan?</h2>
All you need to do is:
<ol>
<li>Pick a broker or a bank</li>
<li>Choose the stock or stocks you want to invest in</li>
<li>Set a monthly fixed amount you want to contribute to the plan</li>
</ol>
<h2 id="the-benefits">The Benefits</h2>
One major benefit is the flexibility of buying any stock without worrying about the lot size. It also leverages on the “Dollar Cost Averaging&quot; investment strategy which:
<ul>
<li>Reduces the impact of volatility by spreading out your stock or fund purchases so you&#39;re not buying shares at a high point</li>
<li>Forces you to save on a monthly basis </li>
<li>Takes the emotion and time out of investing as you do not need to monitor the market</li>
</ul>
<h2 id="monthly-stocks-plan-in-action">Monthly Stocks Plan In Action:</h2>
<quote>Bob Invests in Stock A for HK$10,000/ month</quote>
<img src="https://cms.planto.io/wp-content/uploads/2019/12/monthly-investment-in-action.jpg" alt="">
<h2 id="things-to-note">Things to note:</h2>
Before you start your monthly stocks savings plan, it is important to be aware that you:
<ul>
<li>Have enough liquid savings (at least 3 months) at all times. <a href="https://go.onelink.me/6yy3/973e9afe">You can get a clearer view on Planto by linking your savings!</a></li>
<li>Don’t pick a stock that is too volatile, ideally it should be blue-chip stocks, ETFs, etc</li>
<li>Choose stocks that you feel comfortable investing in the long run</li>
<li>Be mindful of the fees and charges when looking for providers as there are wide variations in the ways they price their services</li>
</ul>

<next-steps-list lang="en">
 <next-steps-list-item type="content" link="https://www.planto.hk/en/blog/monthly-stock-investment-plan-compare" title="Compare monthly investment plans" subtitle="We make it simple to find the best monthly stock investment plan across banks and investment brokers"></next-steps-list-item>
 <next-steps-list-item type="robo_comparison" title="Read about robo-advisors" subtitle="Find an automated investment advisor that will help you get started growing your wealth"></next-steps-list-item>
</next-steps-list>


💰<a href="https://go.onelink.me/6yy3/973e9afe">Want to start investing via Monthly Stock Plans? Get a clearer view on how much you can contribute via Planto!</a>
Important information:
Investment involves risks. This information is intended to be educational and is not tailored to the investment needs of any specific investor. This information does not constitute investment advice and should not be used as the basis for any investment decision nor should it be treated as a recommendation for any investment or action. Past performance is no guarantee of future results. The value of investments and the income from them can go down as well as up, so you may not get back what you invest.

Investing For Beginners: Monthly Stocks Savings Plans. How to get more out of your money by investing in stocks.

[Investing For Beginners] Monthly Stocks Savings Plans

There are a lot of credit cards in the market and each of them have their own unique benefits and welcome offers. You could get cards that focus on: cash-back, air miles, Automatic Octopus Topups (AAVS),better exchange rates or discounts when spending overseas, or just access to airport lounges!
Unfortunately there&#39;s no single &quot;best&quot; card out there &#8211; it&#39;s all about what suits you most. To help you make the best financial decision &#8211; the Planto team has curated, simplified and compared the top credit cards in the market. 

<credit-card-comparison-page language="en" articleName="Credit Card Recommendation Article"></credit-card-comparison-page>


The above table shows that each credit card has its pros and cons, and there is no perfect card out there because everyone&#39;s spending habits and saving needs are different. When choosing a credit card, it may help to ask yourself these questions:
<ul>
<li>Do I value air miles or cash rebates?</li>
<li>Do I have a lot of foreign expenses, including expenses from shopping abroad or online shopping from foreign websites?</li>
<li>Where do I spend most of my money &#8211; is it food and beverage, entertainment, online shopping, tuition fees, water and electricity charges, etc.?</li>
<li>Will I ever use airport lounge services?</li>
<li>Do I often use Octopus to automatically add value?</li>
</ul>
<h2 id="frequently-asked-questions">Frequently Asked Questions</h2>
<h3 id="how-does-the-credit-card-application-process-work">How does the credit card application process work?</h3>
To apply for a credit card, you must be at least 18 years old and meet the minimum income requirement for the card. When applying, you&#39;ll often need to submit proof of income, proof of address and a copy of your ID. Applying for a credit card online is the quickest and usually only takes 10-15 minutes. The approval time depends on depends on the bank and the applicant&#39;s financial situation &#8211; ranging from days to weeks. If your credit score is not good, the bank may also refuse to approve the card or, in some cases, may give you a lower credit limit.
<h3 id="can-i-apply-for-many-cards-at-the-same-time">Can I apply for many cards at the same time?</h3>
Each time you apply for a credit card, the bank will check your credit history &#8211; this is also known as a &#39;hard inquiry&#39;. If someone&#39;s credit history has been inquired multiple times in a short period of time, the bank may worry about the applicant&#39;s financial situation because it implies the person is in need of credit e.g. a loan and is trying to apply to anyone who will give it to him. This can affect your credit history which may result in higher interest rates when applying for a loan or mortgage!
Another problem you may face is keeping track of your repayments for the credit cards and figuring out where you&#39;re spending! Luckily, the Planto app has a payment reminder feature to ensure you will pay your credit card before the due date.
<h3 id="can-the-credit-card-annual-fee-be-waived">Can the credit card annual fee be waived?</h3>
Many credit cards have no annual fee in a promotional period (often lasting 1-2 years) which means you may not need to pay an annual fee in the beginning anyway! Aside from that, one of the &#39;unspoken rules&#39; of credit cards is that as a customer you can actually call the bank and request an annual fee waiver! If you&#39;ve already been charged, you can still try to request them to waive and refund it to you! The Planto app will notify you of any fees you&#39;re charged including late payment and annual fees so you can take action towards it!
<h3 id="do-credit-card-rewards-expire">Do credit card rewards expire?</h3>
It depends! Most rewards last a year, but some banks offer reward points that never expire. If points expire and are not redeemed, they cannot be recovered. If you need some time to get enough reward points for a certain purchase, you could try to call the bank and ask them to give an extension &#8211; but it&#39;s not likely the bank will approve it. If you link your credit cards to Planto, you&#39;ll receive reminders and notifications before the points expire so you don&#39;t lose any money!
<h3 id="what-happens-if-i-only-pay-the-minimum-payment-each-month">What happens if I only pay the &#39;minimum payment&#39; each month?</h3>
You should always try to pay your statement balance on time! The actual interest rate of a credit card can exceed 30% so if you only pay the &#39;minimum payment&#39;, the fees will compound and over time may become more than the amount you had to pay! Furthermore, if you miss your payment, you may be charged a late fee and a handling fee which will make it cost even more. Planto reminds you if you&#39;re charged a late fee so you can pay your statement (in case you forgot) and request a waiver!
<h3 id="what-happens-if-i-lose-my-credit-card">What happens if I lose my credit card?</h3>
Please contact the issuing bank (usually a 24-hour hotline) as soon as possible! They will be able to deactivate your card immediately and re-issue a new one (accompanied with a new credit card number). If the credit card has automatic transfer, Octopus automatic value-added, etc., you would have to set those up again with the relevant institution (unless your bank offers to help with it). Any payments that happen in case of theft will be refunded by the bank as long as you report the theft or loss when it happens.
<h3 id="how-do-i-cancel-my-credit-card">How do I cancel my credit card?</h3>
If you want to cancel your credit card, you can call the issuing bank or go to the branch in person and follow their procedure.
<hr>
With these questions our table above as a guide, you can get closer to finding the right credit cards for you.
In case you&#39;re asking yourself: &quot;How can I pick the right card if I don&#39;t know how I spend my money?&quot; 
That&#39;s what Planto is here for! After linking your credit card and savings accounts to the app, Planto gives you insights on your spending patterns, your spending categories and top merchants, essentially giving you the information you need to pick the right credit card.
<h2 id="about-planto">About Planto</h2>
<a href="https://www.planto.hk/en/">Planto</a> is a Hong Kong fin-tech start-up that brings the new generation a revolutionary intelligent personal finance application. We are generously supported by iDendron from The University of Hong Kong and Cyberport to help Hong Kong users to manage their finances and save money, starting their journeys towards life goals like purchasing a flat, getting married, travelling and studying.
Like <a href="https://www.facebook.com/planto.hk/">Planto Facebook </a>page and follow our <a href="https://www.instagram.com/planto.hk/">Instagram</a> now to receive useful tips on personal finances!

Compare the best credit cards for cash back, air miles, Octopus AAVS, foreign spending or for airport lounge access!

The Best Credit Cards in Hong Kong

Staff benefits is a hot topic amongst the Hong Kong working population, with MPF being one of the most talked about subjects due to its impact towards an employee&#39;s retirement. Whilst the standard for the mandatory employer contributions is 5% for each employee, many employers go beyond and offer higher contributions. 
The fact is not all of us can rely on our employers, but it is still possible to be better prepared for retirement on your own. How? You can choose to make additional voluntary contributions to your MPF.
<h2 id="what-are-voluntary-contributions">What are Voluntary Contributions?</h2>
Voluntary Contributions can be divided into Employee Voluntary Contributions (Employee VC), Special Voluntary Contributions (SVC) and Tax deductible Voluntary Contributions (TVC). Despite having similar names, these three work quite differently. 
Employee Voluntary Contributions (Employee VC)
You can set up your Employee VC via your employer with the monthly contributions based on your income, where accrued benefits can be withdrawn or transferred at the end of your employment. Some employers may offer voluntary contributions as part of their staff benefits where the accrued benefits can be withdrawn or transferred according to the terms made in the employment contract at employment termination. 
If you are satisfied with the performance of your employer’s MPF provider, you choose to increase your employee contributions to more than 5% under the same scheme to scale up your MPF investments and savings. Employee VC can be completely withdrawn or transferred at the end of your employment.
Special Voluntary Contributions (SVC)
SVC is not related to your employer. It is more flexible given you can select your own trustees and liaise with the them directly to open an account. You dictate how much you would like to contribute, which does not have to be fixed and you can withdraw or transfer the accrued benefits anytime (Note: Arrangements vary among different providers). Unlike Employee VC, you can withdraw the accrued benefits in your SVC account anytime (without having to wait till you leave the company), making it a more flexible investment tool.
Tax Deductible Voluntary Contributions (TVC)
The government introduced tax deductions for deferred annuity premiums and Mandatory Provident Fund Tax Deductible Voluntary Contributions (TVCs) to encourage voluntary savings for retirement, with the maximum deductible amount being capped at $60,000. However, TVC can only be withdrawn at the age of 65. Click <a href="https://www.planto.hk/en/blog/mpf-tax-deductible-voluntary-contribution-Fidelity">here</a> to learn more about TVC.
<table>
<thead>
<tr>
<th></th>
<th>Employee VC</th>
<th>SVC</th>
<th>TVC</th>
</tr>
</thead>
<tbody><tr>
<td>Account Opening</td>
<td>Via your employer</td>
<td>You choose your own trustee</td>
<td>You select your own TVC scheme</td>
</tr>
<tr>
<td>Contribution arrangements</td>
<td>The amount of contributions is based on your income; Regular contributions of a fixed amount; Contributions are made to the trustee via your employer.</td>
<td>The amount of contributions is not based on your income; Contributions amounts are not fixed; Contributions are made to the trustee by yourself.</td>
<td>The amount of contributions is not based on your income; Contributions amounts are not fixed; Contributions are made to the trustee by yourself.</td>
</tr>
<tr>
<td>MPF benefits withdrawal &amp; transfer</td>
<td>You can withdraw or transfer your MPF benefits only after ceasing employment.</td>
<td>You can withdraw or transfer your MPF benefits anytime; You can withdraw benefits several times a year. There may be a minimum amount for each withdrawal and a maximum number of withdrawal that could be made. Such rules vary among trustees.</td>
<td>You can withdraw your accrued benefits at age 65 (or on other statutory grounds); The accrued benefits are transferable to another TVC account anytime.</td>
</tr>
<tr>
<td>Tax deduction</td>
<td>Not tax deductible</td>
<td>Not tax deductible</td>
<td>Tax deductible</td>
</tr>
</tbody></table>
Source: <a href="http://minisite.mpfa.org.hk/MPFIE/en/decision-points/additional-contribution/">MPFA</a>/<a href="http://www.mpfa.org.hk/eng/mpf_system/system_features/tvc/index.jsp">MPFA TVC</a>
<h2 id="why-are-voluntary-contributions-important-">Why are Voluntary Contributions important ?</h2>
Hong Kong people have a long life expectancy
Hong Kong people are known to have high <a href="https://www.censtatd.gov.hk/hkstat/sub/so160.jsp">life expectancies</a>. The life expectancy of a male and a female are 82.2 and 87.6 respectively, with the retirement age being between 55-65. With an extra 20+ years after retirement, we have to be well prepared for life after employment and adding a bit more to our voluntary contributions can help with that.
It is a way to fight against <a href="https://www.socialindicators.org.hk/en/indicators/economy/11.3">inflation</a>
Aside from 1999 and 2004, Hong Kong has witnessed positive inflation rate in the past 30 years. This means that the purchasing power of the money you have today will likely be weakened over time if you just leave it in the bank or in cash. As such, increasing your MPF contributions is a great alternative to battling against inflation and keeping the value of your hard earned cash.
You can experience more of the power of compounding
The earlier you start investing, the more you will get upon retirement due to the power of compounding. The difference between making an additional few hundred dollars of contributions to your MPF and not making any could be significant in the long term.
It’s a great way to learn about investing
Many of us want to invest, but aren’t comfortable or confident in investing in the markets by ourselves. Since MPF is mandatory for the working population in Hong Kong, it is a great way for beginners to take the opportunity to learn how investing works.
Try out our MPF calculator to project your MPF accrued benefits in the upcoming years:

<compounded-investment-calculator language="en" type="CONTRIBUTION" calculatorname="Fidelity3_en MPF Calculator"></compounded-investment-calculator>


(All currency is in HKD.)

<banner-ad partner="FIDELITY" language="en"></banner-ad>



<next-steps-list lang="en" title="Learn more:">
 <next-steps-list-item type="content" link="https://www.planto.hk/en/blog/mpf-tax-deductible-voluntary-contribution-Fidelity" title="[MPF 101] Tax-deductible Voluntary Contributions (TVC) FAQ" subtitle="We have the answers to all your questions about TVC"></next-steps-list-item>
 <next-steps-list-item type="content" link="https://www.planto.hk/en/blog/mpf-asset-net-worth-fidelity" title="[MPF 101] See how your MPF grows over time" subtitle="Use our calculator to see how important your MPF will be to retirement"></next-steps-list-item>
</next-steps-list>


About Fidelity International
Fidelity International provides world class investment solutions and retirement expertise to institutions, individuals and their advisers &#8211; to help our clients build better futures for themselves and generations to come. As a private company we think generationally and invest for the long term. Helping clients to save for retirement and other long term investing objectives has been at the core of our business for 50 years.
FIL Investment Management (Hong Kong) Limited was established in Hong Kong in 1981 and is a subsidiary of Fidelity International. We have been managing retirement assets in Hong Kong since 1989. Fidelity is one of the largest MPF scheme providers in Hong Kong, offering members not only comprehensive product offerings but also competitive fees and professional services. With our outstanding investment capabilities and management quality, Fidelity MPF has captured a number of MPF industry awards over the years.
Today, Fidelity is the largest manager¹ in the ORSO employee choice market and the largest pure investment manager² to offer an MPF scheme.
Source:
¹ Willis Towers Watson “Manager Watch”, as at 31/12/2018.
² Mercer MPF Market Shares Report, as at 31/12/2018.
Important information
Investment involves risks. This material contains general information only. It is not an invitation to subscribe for shares in a fund nor is it to be construed as an offer to buy or sell any financial instruments. The information contained in this material is only accurate on the date such information is published on this material. Opinions or forecasts contained herein are subject to change without prior notice. Reference to specific securities mentioned within this material (if any) is for illustrative purpose only and should not be construed as a recommendation to the investor to buy or sell the same. Any person considering an investment should seek independent advice. FIL Limited and its subsidiaries are commonly referred to as Fidelity or Fidelity International. Fidelity, Fidelity International, and the Fidelity International logo and F symbol are trademarks of FIL Limited. This material is issued by FIL Investment Management (Hong Kong) Limited and Planto, and has not been reviewed by the Securities and Futures Commission.
This information is intended to be educational and is not tailored to the investment needs of any specific investor. This information does not constitute investment advice and should not be used as the basis for any investment decision nor should it be treated as a recommendation for any investment or action.
The results of the projection of MPF accrued benefits is calculated based on certain assumptions and it is for reference only.
Investment involves risks. Past performance is no guarantee of future results. The value of investments and the income from them can go down as well as up, so you may not get back what you invest. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments.
The third party mark appearing in this material is the property of the respective owner and not by Fidelity.
This material may contain materials from third parties which are supplied by companies that are not affiliated with any Fidelity entity (&quot;Third Party Content&quot;). Fidelity has not been involved in the preparation, adoption or editing of such third party materials and does not explicitly or implicitly endorse or approve such content. Any opinions or recommendations expressed on third party materials are solely those of the independent providers, not of Fidelity. Third Party Content is provided for informational purposes only.

Voluntary Contributions can be divided into Employee Voluntary Contributions (Employee VC), Special Voluntary Contributions (SVC) and Tax deductible Voluntary Contributions (TVC). Despite having similar names, these three work quite differently.

[MPF 101] Voluntary Contributions? – A breakdown of the three types

The MPF scheme requires employers and employees to contribute a minimum 5% of the employee’s monthly income. What if an employee made additional voluntary contributions (“VC”)? How would it impact the total MPF accrued benefits?
 Let’s say Sally and Candy have the same monthly income. Sally started to contribute an additional 1% monthly income to the MPF account after getting paid for the first time at age 23, whilst Candy does not add any VC to her MPF account.
<img src="https://cms.planto.io/wp-content/uploads/2019/12/en-fidelity-2-ct-_2_revised.jpg" alt="">
From the above, you can see that by contributing an additional 1%, Sally’s pool of retirement funds is higher than Candy by almost $600,000 when they reach 65.
What if, lets say, 20 years later, Candy realises she has missed out and tries to keep up by making 2% of VC to her MPF. Can she keep up with Sally?
<img src="https://cms.planto.io/wp-content/uploads/2019/12/en-fidelity-2-ct-_3_revised.jpg" alt="">
As you can see, even though her VC are 1% more than Sally’s, her overall accrued benefits are still lower. This shows that contributing more early on can definitely give you a head start. Why? Because of the power of compound interest. The earlier you start making additional VC , the bigger the snowball effect.
1% or 2% of your monthly income may only worth few cups of coffee today but it would be a significant portion of retirement assets in the long term if you allocate it to your MPF. Would you give up your daily morning Starbucks for the potential to increase your net worth at retirement?
Try out our MPF calculator to project your MPF accrued benefits in the upcoming years:

<compounded-investment-calculator language="en" type="CONTRIBUTION" calculatorname="Fidelity2_en MPF Calculator"></compounded-investment-calculator>


(The numbers in the above case uses the same assumptions in the Planto MPF calculator. All currency is in HKD.)

<banner-ad partner="FIDELITY" language="en"></banner-ad>



<next-steps-list lang="en" title="Learn more:">
 <next-steps-list-item type="content" link="https://www.planto.hk/en/blog/mpf-tax-deductible-voluntary-contribution-Fidelity" title="[MPF 101] Tax-deductible Voluntary Contributions (TVC) FAQ" subtitle="We have the answers to all your questions about TVC"></next-steps-list-item>
 <next-steps-list-item type="content" link="https://www.planto.hk/en/blog/mpf-asset-net-worth-fidelity" title="[MPF 101] See how your MPF grows over time" subtitle="Use our calculator to see how important your MPF will be to retirement"></next-steps-list-item>
 <next-steps-list-item type="content" link="https://www.planto.hk/en/blog/MPF-special-voluntary-contribution-comparison-advantages" title="[MPF 101] The three kinds of Voluntary Contributions" subtitle="See the difference between Employee VC, SVC and TVC"></next-steps-list-item>
</next-steps-list>


About Fidelity International
Fidelity International provides world class investment solutions and retirement expertise to institutions, individuals and their advisers &#8211; to help our clients build better futures for themselves and generations to come. As a private company we think generationally and invest for the long term. Helping clients to save for retirement and other long term investing objectives has been at the core of our business for 50 years.
FIL Investment Management (Hong Kong) Limited was established in Hong Kong in 1981 and is a subsidiary of Fidelity International. We have been managing retirement assets in Hong Kong since 1989. Fidelity is one of the largest MPF scheme providers in Hong Kong, offering members not only comprehensive product offerings but also competitive fees and professional services. With our outstanding investment capabilities and management quality, Fidelity MPF has captured a number of MPF industry awards over the years.
Today, Fidelity is the largest manager¹ in the ORSO employee choice market and the largest pure investment manager² to offer an MPF scheme.
Source:
¹ Willis Towers Watson “Manager Watch”, as at 31/12/2018.
² Mercer MPF Market Shares Report, as at 31/12/2018.
Important information
Investment involves risks. This material contains general information only. It is not an invitation to subscribe for shares in a fund nor is it to be construed as an offer to buy or sell any financial instruments. The information contained in this material is only accurate on the date such information is published on this material. Opinions or forecasts contained herein are subject to change without prior notice. Reference to specific securities mentioned within this material (if any) is for illustrative purpose only and should not be construed as a recommendation to the investor to buy or sell the same. Any person considering an investment should seek independent advice. FIL Limited and its subsidiaries are commonly referred to as Fidelity or Fidelity International. Fidelity, Fidelity International, and the Fidelity International logo and F symbol are trademarks of FIL Limited. This material is issued by FIL Investment Management (Hong Kong) Limited and Planto, and has not been reviewed by the Securities and Futures Commission.
This information is intended to be educational and is not tailored to the investment needs of any specific investor. This information does not constitute investment advice and should not be used as the basis for any investment decision nor should it be treated as a recommendation for any investment or action.
The results of the projection of MPF accrued benefits is calculated based on certain assumptions and it is for reference only.
Investment involves risks. Past performance is no guarantee of future results. The value of investments and the income from them can go down as well as up, so you may not get back what you invest. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments.
The third party mark appearing in this material is the property of the respective owner and not by Fidelity.
This material may contain materials from third parties which are supplied by companies that are not affiliated with any Fidelity entity (&quot;Third Party Content&quot;). Fidelity has not been involved in the preparation, adoption or editing of such third party materials and does not explicitly or implicitly endorse or approve such content. Any opinions or recommendations expressed on third party materials are solely those of the independent providers, not of Fidelity. Third Party Content is provided for informational purposes only.

What if an employee made additional voluntary contributions (“VC”)? How would it impact the total MPF accrued benefits? 

[MPF 101] Voluntary contributions (VC) – What happens if you contributed more to your MPF?

“Another 5% from my salary!”
The Mandatory Provident Fund (MPF) has often been criticised and misunderstood by the Hong Kong public. This stems mainly from the hype around poor fund performances and the deliberate 5% mandatory deduction from employees’ salaries as part of the scheme. 
However, contrary to popular belief, MPF forms a valuable part of your assets and plays an important part in determining your personal net worth in the future. 
What is personal net worth?
Personal net worth refers to all your assets minus your liabilities. Knowing your personal net worth is an important step of financial planning.
<img src="https://cms.planto.io/wp-content/uploads/2019/12/en-fidelity-1-ct-_final.jpg" alt="">
Your MPF can be worth millions and play a significant part of your net worth &#8211;
According to the statistics of <a href="http://www.mpfa.org.hk/eng/information_centre/statistics/mpf_schemes_statistical_digest/files/December_2018_Issue.pdf">MPFA</a> in 2018, there are around 2.8 millions of employees in Hong Kong who participated in the MPF scheme, making a total of 9.7 million MPF accounts and $813 billions of total assets. To most employees, their MPF accrued benefits can reach millions when they retire, making it a critical asset not to be ignored.
As an example, we have 23 year old Stephen, a typical recent Hong Kong graduate who earns $15,000 per month. With the mandatory contributions made by his employer and himself at 5% of income each, his expected MPF accrued benefits will be $4,469,119 by the time he is 65 years old!
<img src="https://cms.planto.io/wp-content/uploads/2019/12/en-fidelity-1-ct-_2_revised.jpg" alt="">
Start taking your MPF more seriously now
It is important to be clear that MPF is not a monthly expense, nor a far-fetched retirement plan. It is an investment vehicle in your hands. If you manage it wisely, it will turn into a valuable asset for your retirement.
Try out our MPF calculator to project your MPF accrued benefits in the upcoming years: 


<compounded-investment-calculator language="en" type="MPF" calculatorname="Fidelity1_en MPF Calculator"></compounded-investment-calculator>


It is also important to note that additional voluntary contributions (even as small as 1% of your monthly salary) can have a significant impact on your long term personal net worth. Check out how by clicking on the below!
(The numbers in the above case uses the same assumptions in the Planto MPF calculator. All currency is in HKD.)
Learn more:
<a href="https://www.planto.hk/en/blog/mpf-voluntary-contribution-investment-Fidelity">[MPF 101] Voluntary contributions (VC) &#8211; What happens if you contributed more to your MPF?</a>
<a href="https://www.planto.hk/en/blog/MPF-special-voluntary-contribution-comparison-advantages">[MPF 101] Voluntary Contributions? &#8211; A breakdown of the three types</a>
<a href="https://www.planto.hk/en/blog/mpf-tax-deductible-voluntary-contribution-Fidelity">[MPF 101] Tax Deductible Voluntary Contributions &#8211; FAQ</a>


<banner-ad partner="FIDELITY" language="en"></banner-ad>


About Fidelity International
Fidelity International provides world class investment solutions and retirement expertise to institutions, individuals and their advisers &#8211; to help our clients build better futures for themselves and generations to come. As a private company we think generationally and invest for the long term. Helping clients to save for retirement and other long term investing objectives has been at the core of our business for 50 years.
FIL Investment Management (Hong Kong) Limited was established in Hong Kong in 1981 and is a subsidiary of Fidelity International. We have been managing retirement assets in Hong Kong since 1989. Fidelity is one of the largest MPF scheme providers in Hong Kong, offering members not only comprehensive product offerings but also competitive fees and professional services. With our outstanding investment capabilities and management quality, Fidelity MPF has captured a number of MPF industry awards over the years.
Today, Fidelity is the largest manager¹ in the ORSO employee choice market and the largest pure investment manager² to offer an MPF scheme.
Source:
¹ Willis Towers Watson “Manager Watch”, as at 31/12/2018.
² Mercer MPF Market Shares Report, as at 31/12/2018.
Important information
Investment involves risks. This material contains general information only. It is not an invitation to subscribe for shares in a fund nor is it to be construed as an offer to buy or sell any financial instruments. The information contained in this material is only accurate on the date such information is published on this material. Opinions or forecasts contained herein are subject to change without prior notice. Reference to specific securities mentioned within this material (if any) is for illustrative purpose only and should not be construed as a recommendation to the investor to buy or sell the same. Any person considering an investment should seek independent advice. FIL Limited and its subsidiaries are commonly referred to as Fidelity or Fidelity International. Fidelity, Fidelity International, and the Fidelity International logo and F symbol are trademarks of FIL Limited. This material is issued by FIL Investment Management (Hong Kong) Limited and Planto, and has not been reviewed by the Securities and Futures Commission.
This information is intended to be educational and is not tailored to the investment needs of any specific investor. This information does not constitute investment advice and should not be used as the basis for any investment decision nor should it be treated as a recommendation for any investment or action.
The results of the projection of MPF accrued benefits is calculated based on certain assumptions and it is for reference only.
Investment involves risks. Past performance is no guarantee of future results. The value of investments and the income from them can go down as well as up, so you may not get back what you invest. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments.
The third party mark appearing in this material is the property of the respective owner and not by Fidelity.
This material may contain materials from third parties which are supplied by companies that are not affiliated with any Fidelity entity (&#8220;Third Party Content&#8221;). Fidelity has not been involved in the preparation, adoption or editing of such third party materials and does not explicitly or implicitly endorse or approve such content. Any opinions or recommendations expressed on third party materials are solely those of the independent providers, not of Fidelity. Third Party Content is provided for informational purposes only.

Contrary to popular belief, MPF forms a valuable part of your assets and plays an important part in determining your personal net worth in the future. 

[MPF 101] MPF – Your hidden millions

The government introduced tax deductions for deferred annuity premiums and Mandatory Provident Fund Tax Deductible Voluntary Contributions (TVC) on 1 Apr 2019 with the maximum deductible amount being capped at $60,000. Let’s take a look at how it works.
1. What is Tax Deductible Voluntary Contributions (TVC)?
TVC aims at encouraging Hong Kong people to save more for their retirement. Employees would need to set up a new TVC account and make voluntary contributions to their TVC account to enjoy the tax deductions.
2. What is the cap for tax deductions?
$60,000. Note that this tax deductions cap applies to both TVC and Qualifying Deferred Annuity Policy (QDAP). For example, if you spend $40,000 on TVC, and $30,000 for QDAP, your tax deduction limit is still $60,000 for the $70,000 you spent on both.
3. Are all Voluntary Contributions (VC) schemes eligible for tax deductions?
No. You can only withdraw your TVC contributions at age 65 or on other statutory grounds. Although employees can make VC not restricted by this requirement, however, these VC would not be tax deductible.
4. In terms of tax deductions, what is the difference between TVC and Mandatory Contributions (MC)? Can I use both?
Before the introduction of TVC, only MC (maximum of $18,000) are tax deductible. With the new policy, tax deductions from TVC will be calculated after your MC tax deductions, but the respective maximum deductions are still $18,000 and $60,000 respectively.
5. When can I apply for TVC?
The new policy will be implemented for the year 2019/20 tax assessment, with the related applications to be submitted in 2020.
Examples of TVC with salary of $15,000, $20,000, $30,000 and $60,000.
<table>
<thead>
<tr>
<th>Monthly Income ($)</th>
<th>Original Salaries Tax ($)</th>
<th>MC ($)</th>
<th>TVC ($)</th>
<th>Tax payable after deductions ($)</th>
<th>Amount saved ($)</th>
</tr>
</thead>
<tbody><tr>
<td>15,000</td>
<td>780</td>
<td>9,000</td>
<td>9,000</td>
<td>600</td>
<td>180 (-23%)</td>
</tr>
<tr>
<td>20,000</td>
<td>3,760</td>
<td>12,000</td>
<td>12,000</td>
<td>3,040</td>
<td>720 (-19%)</td>
</tr>
<tr>
<td>30,000</td>
<td>17,700</td>
<td>18,000</td>
<td>18,000</td>
<td>14,880</td>
<td>2,820 (-16%)</td>
</tr>
<tr>
<td>60,000</td>
<td>78,900</td>
<td>18,000</td>
<td>60,000</td>
<td>68,700</td>
<td>10,200 (-13%)</td>
</tr>
</tbody></table>
Note: The calculations are based on the <a href="https://www.ird.gov.hk/eng/ese/st_comp_2018_19_budget/stcfrm.htm">Salaries Tax Computation</a> from Inland Revenue Department in 2018/2019. The above examples are for single persons who only enjoy the basic amount of allowance (HK$132,000) and MPF MC tax reduction. For the first three cases, the MC are equal to their TVC, therefore they cannot utilize the $60,000 tax reduction. 
The last example is based on the upper limit of $60,000 tax deduction limit, but it doesn’t mean that all taxpayers can enjoy the $10,200 tax deductions.The amount of tax refunds depends on various factors including one’s income, allowances, tax deductions for QDAP and TVCs.
Reference: <a href="http://www.mpfa.org.hk/eng/mpf_system/system_features/tvc/index.jsp">MPFA</a> / <a href="https://www.legco.gov.hk/yr18-19/english/bills/brief/b201812071_brf.pdf">LegCo</a>
(All currency is in HKD.)
Learn more:
<a href="https://www.planto.hk/en/blog/MPF-special-voluntary-contribution-comparison-advantages">[MPF 101] Voluntary Contributions? &#8211; A breakdown of the three types</a>
<a href="https://www.planto.hk/en/blog/mpf-asset-net-worth-fidelity">[MPF 101] MPF &#8211; Your hidden millions</a>
<a href="https://www.planto.hk/en/blog/mpf-voluntary-contribution-investment-Fidelity">[MPF 101] Voluntary contributions &#8211; What happens if you contributed more to your MPF?</a>

<banner-ad partner="FIDELITY" language="en"></banner-ad>


About Fidelity International
Fidelity International provides world class investment solutions and retirement expertise to institutions, individuals and their advisers &#8211; to help our clients build better futures for themselves and generations to come. As a private company we think generationally and invest for the long term. Helping clients to save for retirement and other long term investing objectives has been at the core of our business for 50 years.
FIL Investment Management (Hong Kong) Limited was established in Hong Kong in 1981 and is a subsidiary of Fidelity International. We have been managing retirement assets in Hong Kong since 1989. Fidelity is one of the largest MPF scheme providers in Hong Kong, offering members not only comprehensive product offerings but also competitive fees and professional services. With our outstanding investment capabilities and management quality, Fidelity MPF has captured a number of MPF industry awards over the years.
Today, Fidelity is the largest manager¹ in the ORSO employee choice market and the largest pure investment manager² to offer an MPF scheme.
Source:
¹ Willis Towers Watson “Manager Watch”, as at 31/12/2018.
² Mercer MPF Market Shares Report, as at 31/12/2018.
Important information
Investment involves risks. This material contains general information only. It is not an invitation to subscribe for shares in a fund nor is it to be construed as an offer to buy or sell any financial instruments. The information contained in this material is only accurate on the date such information is published on this material. Opinions or forecasts contained herein are subject to change without prior notice. Reference to specific securities mentioned within this material (if any) is for illustrative purpose only and should not be construed as a recommendation to the investor to buy or sell the same. Any person considering an investment should seek independent advice. FIL Limited and its subsidiaries are commonly referred to as Fidelity or Fidelity International. Fidelity, Fidelity International, and the Fidelity International logo and F symbol are trademarks of FIL Limited. This material is issued by FIL Investment Management (Hong Kong) Limited and Planto, and has not been reviewed by the Securities and Futures Commission.
This information is intended to be educational and is not tailored to the investment needs of any specific investor. This information does not constitute investment advice and should not be used as the basis for any investment decision nor should it be treated as a recommendation for any investment or action.
The results of the projection of MPF accrued benefits is calculated based on certain assumptions and it is for reference only.
Investment involves risks. Past performance is no guarantee of future results. The value of investments and the income from them can go down as well as up, so you may not get back what you invest. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments.
The third party mark appearing in this material is the property of the respective owner and not by Fidelity.
This material may contain materials from third parties which are supplied by companies that are not affiliated with any Fidelity entity (&quot;Third Party Content&quot;). Fidelity has not been involved in the preparation, adoption or editing of such third party materials and does not explicitly or implicitly endorse or approve such content. Any opinions or recommendations expressed on third party materials are solely those of the independent providers, not of Fidelity. Third Party Content is provided for informational purposes only.

The government introduced tax deductions for deferred annuity premiums and Mandatory Provident Fund Tax Deductible Voluntary Contributions (TVC) on 1 Apr 2019 with the maximum deductible amount being capped at $60,000. Let’s take a look at how it works

[MPF 101] Tax Deductible Voluntary Contributions – FAQ

The Octopus Card. Whether it is for commute, simple purchases or even getting <a href="https://www.planto.hk/en/blog/public-transport-fare-subsidy-scheme">transportation subsidies</a>, it is is an important part of the lives of all who live in Hong Kong. Knowing this, we have now added Octopus as part of the accounts supported and so you can see all your finances in one place on Planto.
<h2>Benefits of Linking Octopus &#8211; Record &amp; Analyse your expenses</h2>
Just like any other accounts linked on Planto, you are able to see the breakdown of all your top ups and expenses. These transactions can be viewed and sorted by date and categories and you are able to get insights on your spendings to see how you can better control where your money is going.
<h2>How do I link to my Octopus?</h2>
If you have downloaded the Octopus App, please make sure you can see your transaction records before you link it to Planto. If you already activated this function, please skip to step 3.
<ol>
<li>Download Octopus app from Play Store or App Store.</li>
<li>Register your Octopus card. If you use an Android phone with NFC, or an iPhone with NFC (iPhone 7 and later with iOS13) you can register your Octopus using the latest version of the Octopus app. For older phones, please register at an <a href="https://www.octopus.com.hk/en/consumer/card-replacement/octopus-service-points/index.html#list">Octopus Service point.</a> Click here to learn more about <a href="https://www.octopus.com.hk/en/consumer/mobile-payment/octopus-app/register/index.html">Octopus registration</a>.</li>
<li>After registering your Octopus, you can link it to Planto. Press the purple + sign on the Monitor tab.</li>
<li>Choose Link a bank account, and choose Octopus.</li>
<li>Enter your Octopus credentials. Tada! Octopus is linked.</li>
</ol>
For more details, you can refer to our <a href="https://www.planto.hk/en/blog/101/Octopus">Octopus instructions</a>.
Try it out and let us know what you think! We’d love to hear how you have been using the feature and how we can improve it even more😊

The Octopus Card. Whether it is for commute, simple purchases or even getting transportation subsidies, it is is an important part of the lives of all who live in Hong Kong. Knowing this, we have now added Octopus as part of the accounts supported and so you  can see all your finances in one place on Planto. 

Octopus automatic tracking is now available on Planto!

Financial Independence. It is something that we ladies all want and need. Whether it is gender pay gaps or differences in priorities, planning our finances well is crucial for us. According to a <a href="https://www.scmp.com/business/companies/article/2149404/pay-gap-hong-kong-women-earn-more-men-20-only-half-when-they-turn">study</a> by SCMP, women earn 11% less than their male counterparts in their 30s and the gap increases to 25% at the age of 50. <a href="https://www.robertwalters.com.hk/news/rw-whitepaper-empowering-women-in-the-workplace.html">Robert Walters</a> revealed that 56% female professionals slow down work progress due to family pressure and commitments, making it even harder for women to stay ahead of their finances. 
It’s a no brainer that we strive for financial independence, but it’s not easy to know where to start. 
If you have the budget, one solution for you is to seek a financial advisor. According to a <a href="https://www.cgsnet.org/ckfinder/userfiles/files/Pru_Women_Study.pdf">Prudential study</a>, women are more likely to seek help from a financial advisor and with the right guidance, have greater confidence and preparedness to meet their financial goals. Let’s dig more into financial advisors and see if they are right for you!
<h2 id="what-are-financial-advisors">What are financial advisors?</h2>
Financial advisors refer to professionals who provide personal financial advice and insights to help their clients manage their finances at different stages of their lives. Personal financial planning covers wealth management, insurance, investments, taxes, retirement planning and even heritage management, with specialists focusing on specific areas.
<h2 id="what-could-they-do-for-you-">What could they do for you ?</h2>
Although financial advising services vary, the general <a href="http://www.ifphk.org/pdf/consumer/Consumer%20booklet_Take%20Control%20of%20YFF.pdf">workflow for financial planning</a> is similar.
<ul>
<li>Goal Setting. A clear goal is important for independent financial advisors and clients to come up with a customized financial plan. Goals varies among people. These could be marriage, flat-purchase, or planning for a baby.</li>
<li>Analyse. Analysing your finances is another key in financial consultancy. If you are not used to keeping track of your finances, some <a href="http://planto.hk/">apps</a> may be handy for you to analyse your spending.</li>
<li>Plan. With an overview of your finances, your financial consultant can plan ways to achieve your financial goals.</li>
<li>Act. Here comes the most important step. Act. No matter how great your plan is, it is important for you to take the initiative.</li>
<li>Monitor. Your financial advisor will be there to keep you on track and watch your progress.</li>
</ul>
<h2 id=""></h2>
<h2 id="what-to-consider-when-choosing-a-financial-advisor-in-hong-kong">What to consider when choosing a financial advisor in Hong Kong?</h2>
There are many financial advisors out there, many of whom provide services via banks. There are also many companies that focus on financial wealth management. Regardless of where you find your financial advisors, always keep in mind the following criteria.
<ul>
<li>Qualifications. In Hong Kong, financials advisors can earn a <a href="http://www.ifphk.org/consumer-corner/cfp">CFP certification</a> to prove their quality. Over 43% HK consumers are &quot;very satisfied&quot; with CFP professionals while half of them stated that CFP professionals are a <a href="http://www.ifphk.org/pdf/weekly_alert/LifesBetterwithCFP_infographic_2016_Members_A4_Front_Ly1.pdf">“trusted source of advice”</a>.</li>
<li>Scope of service. There are a wide range of financial planning services. Check if your financial advisor provides the service that you want. It is to note that financial advisors in HK are NOT allowed to sell insurance and securities products, or give direct investment advices.</li>
<li>Financial planning approaches. Every financial advisor work differently. While some prefer a comprehensive plan, some are more attentive to details. Talk to your advisor beforehand to understand their approach to financial planning.</li>
</ul>
<h2 id="cheaper-alternatives">Cheaper alternatives</h2>
Hiring a financial advisor can be costly. If you are tight on budget, you can check out free online resources like the <a href="https://www.thechinfamily.hk/web/en/">The Chin Family</a> or <a href="https://thenewsavvy.com/">The New Savvy</a> to give you some tips on how to manage your finances better.
For investments, robo-advisors may be an option for you. You just need to answer some questions through an online medium and an AI system will analyse your finances and come up with a portfolio for your goals. Robo-advisors usually cost less than a human advisor. These companies include <a href="https://www.8securities.com/">8 Securites</a> and <a href="https://www.aqumon.com/?qd=Google_Keywordad&amp;gclid=CjwKCAjw1KLkBRBZEiwARzyE7xs8Wvk6i2Y5ADCNhKHvJnOu3CVpdTJ_muB2gho8ILQXAGNCSCXdqhoCLQMQAvD_BwE">Aqumon</a>.
Financial planning is essential. While some of you may have everything figured out, most of us are dazzled by the complexity of the finance world. So, don’t be shy and seek professional help to manage your finances!

Financial advisors can be your guide in the world of money. Many young women want to seek financial independence and be in charge of their finances, but often, they don’t know where to start. A financial planner can be handy.

[IWD 2019] Financial Advisor – Do you need it?

When the Planto team asks our female users about what they are doing to achieve their life goals, 70% of our female respondents say 
“I want to invest, but I don’t know anything about finances!”
Multiple studies have also been done which reveal that women tend to be risk-averse when it comes to investing. 
<a href="https://www.ellevest.com/">Ellevest, an investment platform for women</a>, conducted a study which showed that 70% of assets controlled by women are left in cash and not invested. 
<a href="https://www.bofaml.com/content/dam/boamlimages/documents/articles/ID18_0244/ml_womens_study.pdf">According to Merrill Lynch</a>, 41% of women wished they invested more of their money.
So ladies, what can we do to overcome our fear of investing and thrive financially?
With International Women’s Day, let’s take a look at the steps we can take to get in the driver&#39;s seat for our finances and make our money work for us!
<h2 id="start-now">Start Now!</h2>
Allocate a fixed part of your income to investments
Don’t wait until there is “enough savings”. Experts have advised using the 50/30/20 principal when allocating a budget. 
You should keep your needs at 50% of your income, self-care at 30% and the remaining 20% should be a mix of savings and investments.
<h2 id="start-simple">Start Simple!</h2>
Don’t be scared by the complexity of investments, start simple. 
Consider going for <a href="https://www.planto.hk/en/blog/term-deposit-latest-offers-comparison">a low-risk time deposit</a> to get a higher than normal returns from your savings account.
If you want to try investing in the market, go for a robo-advisor like <a href="https://www.8securities.com/">8 Securities</a> or <a href="https://www.aqumon.com/cn">Aqumon</a>. They can manage your portfolio at a fraction of the cost of a human advisor. These services still have a personalized touch to it as the portfolio is constructed based on your risk appetite and time horizon.
But if you prefer having a human guide you, there are a lot of financial advisors out there to choose from.
On a side note, although not really an investment option in a traditional sense, if you have an MPF, you’ve technically started investing already! 
<a href="https://www.planto.hk/en/blog/mpf-personal-accounts-consolidation">Understanding your MPF portfolio</a>(s) and their performances is a great way for you to adopt some investment skills. It is also incredibly important for you to manage it well because of the impact it has on your retirement!
<h2 id="tame-your-fears-and-be-confident">Tame your fears and be confident</h2>
Sometimes, we get caught up about what other people say about what is the right strategy and doubt ourselves. However, the truth is women are better at investing than men and can do well following their instincts. 
Alpha males may rule Wall Street but women quietly achieve better results. 
Due to the cautious nature of women, our tendencies to look for long term stability and our practice of seeking advice from professionals when needed has led us to be better investors. 
Men, on the other hand, tend to be overconfident about their decisions and more likely to actively trade stocks which leads to over-trading which dilutes performance. 
<a href="https://www.fidelity.com/about-fidelity/individual-investing/better-investor-men-or-women">According to a study by Fidelity,</a> women outperform men in investing by 0.4%. At first glance, this may appear to be a minor difference but can have a long term impact given women also save more than men.
<h2 id="join-ladies-who-have-the-same-goals">Join ladies who have the same goals</h2>
Support systems are important. Find like-minded people who you can share your goals, challenges and concerns!
If you are interested in finding a place to get holistic financial education, <a href="https://heelsandyield.com/">Heels and Yield</a> is the perfect place for you. 
If you are looking into investing with a social impact, try <a href="https://moxiefuture.com/">Moxie Future</a>.
<a href="https://thenewsavvy.com/">The New Savvy</a> is also a great place if you want to gather with women to and share thoughts and advice on how to manage finances better. 
There are many other organizations in Hong Kong that are focused on female financial empowerment and they frequently hold events to gather, especially during International Women’s Month!
So what are you waiting for? Do your research, trust your gut, and get started. When you see how much your savings can grow, you’ll regret not starting earlier. 
Investing is less intimidating than you think &#8211; Happy International Women’s Day!

With International Women’s Day, let’s take a look at the steps we can take to get in the driver's seat for our finances and make our money work for us!

IWD 2019 Special – Ladies, let’s start taming our investing fears and take control of our money!

Time deposits are quite conservative when it comes to investments. However, with the recent fluctuations in the market, time deposits could be a solution for you <a href="https://www.planto.hk/en/blog/low-risk-investment-tools/">if you are looking for low-risk investments</a> or if you are a beginner investor.
<h2 id="what-are-time-deposits">What are time deposits?</h2>
Time deposits are essentially a type of savings accounts with a fixed interest rate and fixed date of withdrawal. Users deposit a certain amount of money to the account and earn a higher interest rate than a regular savings account.
An alternative to time deposits with slightly more return and flexibility are <a href="https://www.planto.hk/en/blog/Money-Market-Fund-Intro/">money market funds</a>, but if you&#39;re intent on getting a time deposit, we&#39;ve compared the best plans in Hong Kong for you:

<time-deposit-calculator language="en"></time-deposit-calculator>


<h2 id="whats-so-good-about-time-deposit">What’s so good about time deposit?</h2>
<ul>
<li>No prior investment knowledge is needed. Compared to investing in the stock, bond or real estate markets, time deposits are easier for investment beginners to understand and to pick up basic investment skills.
</li>
<li>Stable returns. Since the interest rates of time deposit plans are fixed, it is guaranteed that investors can earn a certain amount of return after the agreed term length. Therefore, the investment risk is much lower than investing in the stock market or property market because of the certainty.
</li>
<li>Low threshold. The threshold for time deposits are lower than other financial assets, where it can go as low as HK$10,000.
</li>
<li>More choices. Different banks provide different time deposit plans, as such investors can choose according to their budget.
</li>
<li>It’s simple. Unlike investing in the stock market, you don’t have to spend hours researching on trends or doing scenario analyses. The only thing you need to do is to choose a bank, the amount of deposit and the duration. Then, you can sit back, relax, and wait for your returns. You can refer to our calculator to see which plan is best for you!
</li>
</ul>
<h2 id="points-to-note-about-time-deposits">Points to note about time deposits</h2>
Sometimes, a longer term length does not necessarily mean higher yield. Banks often launch some <a href="https://www.scmp.com/business/banking-finance/article/2178805/hong-kongs-de-facto-central-bank-raises-base-interest-rate">short-term high-rate plans</a>, like a 2.7% interest rate for a three-month time deposit. However, most of these will have certain restrictions like minimum deposit amount, term length or even bank account type, and any breach of these restrictions many result in a penalty. Be sure to check twice before committing to a time deposit plan.
<hr>

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Compare the interest rates and find out the best deals of Time Deposit plans in Hong Kong banks, including HSBC, BOC, Standard Chartered and a lot more! 

The Best Time Deposit Plans in HK

At Planto, we believe managing your finances should be simple, but we also want to ensure you can manage your finances the way you want.
A month ago, we launched <a href="https://www.planto.hk/en/blog/planto-tag-record-track-expense">#tags</a> to help you understand your spending, now we’re launching what we call Manual Accounts.
<h2 id="why-we-created-manual-accounts✋🏻">Why we created Manual Accounts✋🏻</h2>
Although we support more than 30 Hong Kong financial institutions, we know we’re still missing providers such as PayMe, Octopus and PayPal, as well as other financial providers of loans and investment services which can be a big part of your finances. We’re still working hard to bring these to you, but felt strongly about building an alternative solution for you in the meantime,
which is why we created Manual Accounts.
Manual Accounts give you the flexibility to create any accounts not currently supported by Planto and makes our manual tracking features a lot more powerful as it allows you to manage all your finances in one place. It makes Planto the only budgeting app you will need.
We also know that some of you may not want to link your accounts, so we also built this feature to make sure it meets your needs so that you get the same level of insights as any other users.
<h2 id="what-exactly-can-you-do-with-it🤔">What exactly can you do with it?🤔</h2>
With manual accounts, you can create a preset Octopus, PayMe or Cash Wallet, or opt to customize your very own account.
Our presets are pretty intelligent &#8211; every time we detect an Octopus top-up, a PayMe transfer in or out of your account or an ATM withdrawal, your wallet balance will change automatically.
But if you want total customization, you can create a custom account where you can choose any currency and create any kind of account, from savings or investments to credit cards or even your mortgage!
After you’ve made your account, the rest is simple. Any expense you add will reduce your wallet amount, and any income will increase it! You can now even track your goals against your manual accounts. You will see it as an option after you set your house or custom goals!
<h2 id="so-how-do-i-actually-use-it👍🏻">So how do I actually use it?👍🏻</h2>
<ol>
<li>Go to the Accounts tab, press the purple +, then press Add Manual Account.</li>
<li>You can choose from preset accounts like PayMe, Cash and Octopus, or choose the Custom option.</li>
<li>To add a transaction, press the purple + again and choose Add a Transaction.</li>
<li>Select a category for your transaction, fill in the Amount and Date to save.</li>
<li>You can also change the Currency and Account of the transaction, add descriptions or attach a receipt.</li>
</ol>
<h2 id="herere-some-ideas-for-when-manual-accounts-would-be-handy💡">Here’re some ideas for when manual accounts would be handy💡</h2>
<ul>
<li>You want to track your cash on hand</li>
<li>You want to track e-wallets and Octopus</li>
<li>You have overseas bank accounts that you want to track as part of your net worth in the app</li>
<li>You have financial assets (loans, mortgages, investments) in institutions not yet supported by Planto (tell us if you’d like to see them in the app!)</li>
<li>You want to track your goals and see your progress against the accounts</li>
</ul>
Try it out and let us know what you think! We’d love to hear how you have been using the feature and how we can improve it even more😊

Manual Accounts give you the flexibility to create any accounts not currently supported by Planto and makes our manual tracking features a lot more powerful as it allows you to manage all your finances in one place. It makes Planto the only budgeting app you will need.

Introducing Planto’s Manual Accounts

Chinese New Year is approaching and it is the red packet season again. If you are not Chinese, you may wonder what this little red envelope people give to each other during CNY is and what etiquettes you may need to follow. Here is everything you need to know about red packets in time for the year of the pig!
Red packet – The money that brings luck
In traditional Chinese culture, elderlies would give younger relatives in the family red packets to give them blessings for the new year. The red envelope represents happiness and peace. It was even seen as a power against the evil spirits in ancient culture. In modern society, this lovely tradition is extended to workplaces and between acquaintances where employers and seniors would give out red packets as “lucky money” to thank their juniors for working hard in the past year.
Should I give out red packets?
Generally, only married people have to give out red packets. However, if you hold a senior position in your company, even if you are not married, it is still a common practice to give red packets to your team as an appreciation for their hard work and as a New Year blessing.
How much should you put in a red packet?
Red packets often come in two, representing both people of a married couple. The general rule is, the closer you are with the receiver the higher the amount. Usually for acquaintances like colleagues and neighbours, it would be $10 &#8211; $20 per packet. For close family members however, it can go up to $500 or even $1,000 per packet.
Do’s and Dont’s when receiving and giving red packets
Since red packets represent blessings from the elderly, when you receive a red packet, it is appropriate for you to receive it with both hands and say nice things like “Happy New Year” and “Wish you a healthy and happy year”. Note that it is very impolite to accept a red envelope with one hand. If you are giving out red packets, avoid putting coins in red packets and always make sure the amount of money is an even number because Chinese people only give out envelopes with an odd amount of cash in funerals.
When technology meets tradition – Cashless red packet
Red packets have also made technological advancements to cater to the cashless era. DBS has already launched <a href="https://www.finews.asia/finance/28134-dbs-red-packets-go-cashless">cashless red packets</a> in Singapore where money can be easily transferred by scanning a QR code, adding a nice touch of modernity and convenience to this historic traditional cultural practice. The annual Chinese New Year TV program &#8211; CCTV Spring Festival Gala &#8211; also launched an <a href="https://m.chinaknowledge.com/News/DetailNews/84842/">interactive activity</a> where audiences can earn red packets by shaking, searching and watching video clips on Baidu app. Even not during Chinese New Year, some Chinese apps like <a href="https://blog.wechat.com/2016/01/27/we-chat-about-wechat-5-red-packets-wechats-secret-weapon-in-payments/">Wechat</a> allow you to send your contacts (or even yourself) electronic red packets as gifts.
Red packet promotions
To celebrate the tradition of red packets, many Chinese finance apps like <a href="https://www.alipay.com/">Alipay</a> and <a href="https://pay.weixin.qq.com/index.php/public/wechatpay">Wechat pay</a> offer red packets to their loyal users. For example, Alipay announced that it will spend <a href="http://www.china.org.cn/business/2019-01/25/content_74408531.htm">500 million RMB</a> on red packets for users. Stay tuned to these flash promotions to earn some extra cash!
Chinese kids have always loved the red packet culture. To most children, red packets are their sole source of income throughout the year. To parents, the red packet culture is a nice way to implant personal finance concepts to children starting from a young age. Let’s see how many red packets you are getting this year!

If you are not Chinese, you may wonder what is this little red envelope people give to each other during the CNY and what etiquettes you may need to follow. Here are some guidelines for the Year of Pig and everything you need to know about red packets.