Why do young workers still dare choose high risk? A generational divide after the crash

MPF’s 2011 performance disappointed, but interviews found most people saw MPF as a long-term investment and worried little about short-term results — especially the young, who kept chasing high risk for high returns.

How do the young see it?

“I’m still young — all high-risk, all in Hong Kong equity funds!” Young worker Mr Wong admitted he barely monitored returns with decades of contributions ahead; even the mini-crash left him confident. Young Gary likewise kept his high-risk mix through the turmoil, expecting recovery in time.

And those near retirement?

Safety first. Mr Tsang, retiring in seven or eight years, kept nearly 90% in conservative funds. Near retirement, capital preservation should rule; stock exposure, if desired, could come from separate savings for diversification.

Who is right?

Both — because their life stages differ. That is the core of MPF allocation: the further from retirement, the more volatility you can bear for long-term growth; the nearer retirement, the more you must protect what you’ve built. The worst mistake is reversing it: too conservative when young, chasing risk near retirement.

Knowing your investment horizon is step one of allocation. Compare funds by risk with MPF fund search.