Should You Switch Your MPF Mix Mid-2010?

What did a 2011 “MPF Insights” column say?

Mid-2010 review: the Hang Seng fell 4.82% in the first half, 10% in June alone, but January–March had decent gains — not a straight slide. Global recovery had closed the gaps, but inventories neared peaks, so markets would likely correct into late 2010 before resuming; with last year’s sharpest gains in the first six months off the lows, next year’s rise would be milder.

Should MPF follow the market?

No. MPF is long-term; balanced/growth choosers needn’t shift with global trends unless personal circumstances or retirement goals change; frequent switching risks missing gains while out of the market. The exception: heavy Europe weightings — the sovereign debt crisis made Europe’s next year or two unpredictable, while the US and Asia, especially Asia’s decade of high growth, looked brighter.

No time to manage?

Consider target-date funds: managers auto-allocate by your years to retirement. Compare first at MPF fund comparison.