MPF Basics: Asset Allocation Matters More Than Stock-Picking

Why does asset allocation beat stock-picking?

Whether MPF or savings plans, portfolio performance hinges on asset allocation — shifting the equity-bond mix with the economic cycle; remember Buffett’s rule number one: never lose money, and rule number two: never forget rule number one. Losses usually come from chasing highs or over-concentration — controlling downside matters far more than chasing upside.

What if you have no time for research?

Most workers lack time to study markets. Consider lifecycle funds that auto-adjust the equity-bond mix, or start by understanding each fund type and setting risk by years to retirement.