MPF monthly and half-year performance: how to read fund return data

(The original story was a chart of MPF fund performance for the past month and first half; this is an editor’s guide to reading it.)

Each month’s MPF performance release lists fund-category returns for the past month and half-year. A few things to remember when reading these figures: first, the MPF is a long-term investment — one month or even half a year’s moves say little about a manager’s true skill. Second, fund categories carry different risks, so returns can’t be compared head-to-head — equity funds swing both ways, conservative funds aim for stability.

Any tips for reading performance data?

Zoom out, and measure against your own goals. Instead of chasing last month’s top performer, check whether a fund’s multi-year record is steady and whether it matches your risk tolerance. The MPF is not for short-term trading — don’t switch in because of one good month or bail out after one bad one.

To track long-term fund returns, visit MPF fund comparison.