Six MPF Myths Debunked: Fidelity Says Small Contributions Still Deserve Attention

With the Employee Choice Arrangement expected next year, members will soon switch trustees based on background, performance and fees. A Fidelity survey found many MPF members hold misconceptions that undermine how they manage their MPF. Fidelity Hong Kong’s Cheng Kim-wai sets the record straight.

Myth 1: Monthly contributions are small, so no need to adjust the portfolio?

Wrong. The average employee MPF account holds $125,000 — not pocket change. The survey found MPF accounts for over 10% of total assets for 28% of respondents — no reason for indifference. If contributions feel too small for retirement goals, consider topping up with voluntary contributions.

Myth 2: MPF is long-term investing, so never switch the mix?

Wrong. Review every six to twelve months. 81% of members wrongly believe MPF’s long horizon means leaving the portfolio untouched. Cheng says members should regularly review their investment mix — not only when markets swing, retirement nears, or life stages change (marriage, children).

Myth 3: Choose a provider by its perks?

Wrong. Don’t chase perks into a poor performer. 6% of respondents said trustee perks would be the top factor in switching after ECA. Cheng warns that moving to a weaker provider for perks alone could derail long-term goals — penny-wise, pound-foolish.

What else matters?

Fees aren’t everything — performance matters more. As Cheng has noted elsewhere, fund performance outweighs fees. With more choice under ECA, members should do their homework, comparing fees, performance and service before deciding to switch.

To compare charges and returns across MPF funds, visit MPF fund comparison.