How Can MPF Beat Inflation?

What did experts advise when markets were under pressure in 2011?

In 2011, experts offered two inflation hedges for MPF: top up contributions when markets crash, or switch to guaranteed funds — with Hong Kong stocks not yet at trough valuations, the guaranteed fund was the safer pick. To April 2011, 27 local guaranteed funds averaged 3.99% over three years, beating equity funds’ −1.09%.

What should you watch in guaranteed funds?

Performance varies — compare medium-to-long-term returns: one fund paid a 5% guaranteed annual return on US Treasuries; another held diversified US dollar corporate bonds.

How to compare guaranteed fund fees?

See returns and expense ratios at MPF fund comparison.