Why Are MPF Index Funds Cheap and High-Returning?

What did the MPFA’s 2011 ten-year report say about index funds?

The MPFA’s 2011 decade report showed MPF assets grew HK$87.92 billion over ten years to an average HK$144,902 per account; index funds stood out as cheap and high-returning. Net contributions of HK$277.52 billion had grown to HK$365.44 billion — proof the system built meaningful savings.

How much do managers earn in fees yearly?

At a 1.8% average fee, yearly management revenue hit HK$6.58 billion shared among 19 trustees — HK$346 million each on average, with clear room to cut.

How much does picking right matter?

Smart versus random picks differed by 30%; compare ten-year annualised returns at MPF fund comparison.