MPF Ten-Year Return Hits 33.91% — Which Funds Led?

Which MPF fund type performed best over ten years?

MPF’s ten-year return reached 33.91%, with equity funds up 58.03% leading the pack and money funds trailing at just 1.47%. In a January 2011 report, Gadbury noted Asian equity funds were the star: up 102% over ten years, far ahead of global equity funds’ 18.86%. Hong Kong equity funds rose 95.33% over the decade, slightly beating the Hang Seng Index.

What about the single year 2010?

Asian funds led in 2010 as well. The long-run numbers show equity funds, despite volatility, clearly outran conservative options over a decade. Before choosing, compare long- and short-term performance and fees at MPF fund comparison.

How will the Employee Choice Arrangement affect fees?

Gadbury expected MPF fees to fall by more than 10% in 2011 under the Employee Choice Arrangement (“semi-portability”). Lower fees plus long-run equity returns are the two keys to compounding retirement savings.