How to invest your MPF: Buffett’s rule one — never lose money

Warren Buffett has two investment rules: rule one, never lose money; rule two, never forget rule one. It applies to MPF investing too.

How should you allocate assets?

Diversify plus dollar-cost averaging. MPF is a long-term game — don’t put all eggs in one basket: split across equities, bonds and conservative funds by age and risk appetite — aggressive when young, cautious near retirement. Monthly fixed contributions are dollar-cost averaging in action: buy more when markets fall, less when they rise, smoothing costs over the long run without timing tops or bottoms.

What mindset should you avoid?

Buying in panic, selling in euphoria — backwards. The classic retail mistake is inverted: piling in when markets boom, panic-selling when they crash. With contribution horizons spanning decades, short-term swings don’t matter; what matters is periodic reviews to check your allocation hasn’t drifted with the market — and rebalancing when it has.

To check whether your portfolio is diversified enough, visit MPF fund comparison.