Review Your MPF Mix at Least Yearly: Don’t Guess Markets — Follow Life Stages

MPF is long-term investing; frequent fund-switching doesn’t necessarily help returns. AIA Pension senior vice-president Tse Pui-lan advises: review your MPF portfolio at least once a year, adjusting for life-stage goals and the broader economy.

When to review

How to adjust

Follow life stages: marrying and raising a family? Spread across equities and bonds to balance risk and return. Near retirement? Favour lower-risk funds for stability.

See the whole portfolio: if your personal investments already run high-risk, go conservative in MPF to diversify; if you’re heavy in time deposits, MPF can be more aggressive to chase returns.

The cardinal sin: market-guessing

Never switch funds on short-term market predictions. Switching takes time — you can’t catch intraday moves, and you’ll likely buy high, sell low. When Japan’s earthquake hit, the right move was to observe first, not act.

Reviewing doesn’t mean moving — it means looking. Deciding to stay put after looking is also a decision. Compare MPF funds’ fees and returns at MPF fund comparison.