When and How should I Adjust My MPF Fund Choices?
Review Your MPF Fund Choices Regularly
Your MPF investment can span several decades, during which you may go through different life stages, such as changing employers, purchasing property, getting married, raising a family and finally retiring. You should review your MPF investment regularly to ensure that it is in line with your investment objectives, preferred asset allocation and risk tolerance level. If there is any mismatch, you should then adjust your fund choices.
How Often Should I Review My MPF Fund Choices?
If you enter into a new life stage, such as purchasing property, getting married or having children, you should consider reviewing your existing fund choices because your risk tolerance level may change with the changes in your personal circumstances. In general, it is good to review your fund choices once every six months or once a year, and consider making adjustments if necessary. For example, as you get closer to retirement, you might consider switching to a more conservative portfolio.
(in Chinese only) |
When reviewing your MPF fund choices, you should make reference to the Annual Benefit Statement and Fund Fact Sheet provided by your trustee.
Points to Note when Switching Funds
If you plan to switch funds after reviewing your fund choices, you should:
- not redeem a fund simply because of short-term price fluctuations, nor try to predict market movements;
- note the number of fund switches allowed for each scheme; and
- understand the terms and conditions of the funds (especially those of Guaranteed Funds), as failure to fulfill some qualifying conditions may cause the loss of guaranteed returns.
- You should also be aware of the potential out-of-market risk.
