Patrick Poon: how to handle MPF investments in a bear market

Markets are volatile and the latest mpf fund performance numbers show MPF balances deep in the red again. Commentator Patrick Poon says MPF is a long-term investment — don’t panic over short-term swings. The key is matching your fund mix to your age and risk tolerance.

What should younger members do?

Younger contributors have decades to ride out market cycles, so they can take more risk with higher equity weightings, Poon says. Bear markets are buying opportunities — monthly contributions harness dollar-cost averaging.

What about those nearing retirement?

Those close to retirement should be cautious, gradually shifting into conservative or bond funds to lock in past gains. A market crash on the eve of retirement can wipe out years of savings.

Should you switch funds frequently?

Frequent switching risks buying high and selling low, hurting long-term returns. Rather than guessing markets, review your portfolio regularly to keep the asset mix aligned with your goals.

Do fees matter?

Fees are a key drag on long-term returns. Compare fee levels across funds — over the years, small differences compound into big gaps in final benefits.

Compare fund fees and performance at MPF fund comparison.