Take 15 minutes to check for bond funds — rising rates mean falling bond prices

Many readers have never looked at their MPF portfolio, having picked a bit of equities, a bit of bonds and some deposits when opening the account and never revisiting it. But with the rate-hike cycle beginning, bond yields will inevitably rise — and bond prices will fall.

Why avoid bond funds now?

Higher rates mean lower bond prices. Bond prices move inversely to yields: in a hiking cycle, yields climb and prices drop. If your MPF portfolio holds bond funds, one glance — well under 15 minutes — tells you whether to switch them out.

To review what’s inside your portfolio, visit MPF fund comparison.