MPF funds: a chooser's guide
Making the right MPF choices is even harder if you don't know the jargon. Nicky Burridge offers a guide for novices
New rules enabling members of Hong Kong's Mandatory Provident Fund (MPF) to transfer their contributions to a provider of their choice have increased the range of funds.
But with more than 460 from which to choose, you could be forgiven for feeling overwhelmed. Matters are not helped by jargon used to describe the funds.
Money Post has assembled a concise guide for investors who don't know their dynamic allocation funds from their capital stable ones, to navigate through the fund maze.
Kelvin Lee, head of institutional business at Schroder Investment Management in Hong Kong, says: "The first thing people must decide in choosing a fund is their investment objective."
A key part is knowing how much risk you want to take with your money. For example, if you are 30 years from retirement, you may feel comfortable with a lot of investment volatility if it means you get a higher return over the medium to long term.
But if you are five years from retirement, you may prefer not to risk the value of your investment falling. As a result, you are likely to adopt a more conservative investment strategy, even with potentially lower returns.