Information Centre

Your MPF is a long-term investment spanning 30 to 40 years, during which you may experience a number of variables in life, such as achieving career advancement, getting married, buying a home and having children, to name a few. MPF scheme members are advised to review your retirement investment portfolio regularly since your investment goals and risk-tolerance level may vary at different stages of your life. Here are some important factors to consider when you are reviewing your MPF investment portfolio. 

Review your asset-accumulation progress
When building your MPF investment portfolio, you should set a target to let you review the progress of asset accumulation against your expectations. If the accrued value of your assets is higher than expected, you may need to review the risk level of your investment portfolio with a view to balancing the long-term investment risks and returns.

If the accrued value of your assets is below your expected level, then you may consider whether you should adjust your investment portfolio according to your risk-tolerance level and investment horizon with a view to continually accumulating your retirement reserves. In addition, scheme members should base on their different stages of life to review the feasibility of your investment objectives, reassess your retirement needs, and consider reducing expenses or increasing your retirement savings/ Making MPF voluntary contributions is an effective way to enhance one’s retirement reserve.

Be aware of out-of-market risk
Before adjusting your MPF investment portfolio, you should assess the performance of MPF funds from a long-term perspective, instead of switching funds simply because of short-term price fluctuations, and you should never try to predict market movements.

You should also be aware of the out-of-market risk when your funds are being transferred. The transfer process generally involves an investment time-lag of one to two weeks between the time the trustee of your original scheme redeems the units in the fund(s) and the time the trustee of your new scheme subscribes to units in a new fund(s) for you. During this period, your MPF benefits will not be invested in any fund. Since fund prices may change due to market fluctuations during this period, there is a chance of “selling low and buying high”. Be mindful of this risk before making a transfer.