MPF warning should include retail banks
I fully agree with Yiu’s warning, but suggest that it is not only sophisticated phone scams that such people need to be very wary of but also the “wealth management” services offered by retail banks, which appear to me more likely motivated by the drive for commissions rather than the interests of clients.
In my own case (“a cautious investor”), my MPF money, released on my reaching 65 in 2011, has been invested in mutual funds recommended by my bank. Since then, almost all have lost value – generally 2 per cent to 3 per cent – before being switched into other recommended mutual funds which have followed the same downward trend. Currently, despite major stock markets being at or near record highs, my present mutual funds are about 5 per cent below their purchase prices in September 2014.
I appreciate that investments involve risk and warnings are given before investing that returns are not guaranteed, but I cannot believe I am alone in having been recommended so many “dog” funds.
Accordingly, I strongly urge that if the regulatory authorities are going to institute a publicity campaign warning of potential threats to retirees’ MPF money, they should not overlook warnings about the banks’ wealth management services, which may in reality present a much greater danger.
Doug Miller, Tai Po