Getting married soon? Consider mixed-asset funds

Mr Wong, 30, is a project manager at a local engineering firm earning about HK$22,000 a month. He runs an aggressive MPF strategy but, with a wedding planned next year, wonders whether to adjust his portfolio. AIA Pension and Trustee senior vice-president Alice Tse suggests workers aged 30–35 starting families consider mixed-asset funds.

Why mixed-asset funds?

Medium-to-high risk, with 30-plus years to retirement. Tse explains mixed-asset funds invest in both equities and bonds; workers in their early thirties still have decades to retirement and can fully enjoy dollar-cost averaging — buying fund units regularly in fixed amounts so gains on units bought low offset the cost of units bought high, smoothing the effective cost over time.

Any examples?

A manager’s-choice retirement fund that flexes the equity-bond mix. Tse cites mixed-asset funds such as AIA-JF’s “Manager’s Choice Fund”, where the manager adjusts the equity-bond weighting with market conditions — ideal for workers short on time or investment know-how. Per the MPFA’s 10-year investment review, mixed-asset funds held HK$158.4 billion in net assets at last year-end, 43.34% of total MPF assets, with a 61.50% cumulative 10-year return and 4.90% annualised.

What else before the wedding?

Consider voluntary contributions and balance the whole portfolio. Tse reminds that the MPF is only part of one’s overall financial plan: if investments outside the MPF already run high risk, choose lower-risk MPF funds to balance. For future family needs, voluntary contributions — even a few hundred dollars a month — help fund retirement.

Workers planning a wedding and rethinking their MPF can compare mixed-asset options at MPF fund comparison.