What Are Ten Years of MPF’s Lessons?

How did iMoney sum it up in 2011?

iMoney magazine reviewed MPF’s decade: launched December 2000, assets grew from over HK$180 billion to over HK$390 billion; ten-year annualised returns about 3.4%, about 1.7% real after inflation. Lessons: fees eat returns — average fees about 2%; diversification matters — equities win long-term but swing; review regularly — allocations should follow life stages; don’t trade — long-term holding is MPF’s whole point.

What can workers do?

Remember the lessons: pick low fees, review regularly — at MPF fund comparison.