Why Did Long-Term MPF Investing Weather Volatility?

Should Short-Term Swings Trigger Fund Switches?

Chik Gor reminded colleague Tsz-ching that MPF is a long-term investment — no hasty portfolio changes over short-term market moves. Across a decade spanning SARS in 2003 and the 2008 financial crisis, MPF still averaged 5.5% annual returns.

How Did Dollar-Cost Averaging Work?

Monthly fixed MPF contributions bought fewer units when prices rose and “bought the dip” when they fell, smoothing the purchase price over time. Tsz-ching’s twin sister picked a more aggressive equity fund that plunged in the crisis — yet her annual statement showed more accrued benefits, thanks to long-term investing and averaging.

Did That Mean Never Reviewing the Portfolio?

Averaging offset temporary swings without constant strategy changes, but regular reviews were still wise. Weigh investment goals, risk tolerance, and years to retirement, adjusting when needed to manage MPF actively.
Long-term investing still needs regular reviews — compare MPF funds on risk and return and adjust the mix by life stage.