LettersHelp Hong Kong’s passive MPF investors make better decisions
- A large number of MPF account holders invest in default options and rarely make active investment decisions, pointing to the need for more effective investor education programmes
The MPFA website features a well-organised, educational mini-site, presenting information for four different age groups about six decision points and five types of funds. Yet, the information presented has had a limited impact on investor behaviour. For example, a Chinese-only retirement planning mobile app offered through the mini-site has been installed 55,000 times with only around 23,000 registered accounts.
The IFEC, which is also committed to investor education, has organised activities to effectively engage the public. Through a Retiree Financial Literacy Ambassador programme, more than 100 elderly people have shared their financial and investment knowledge through face-to-face workshops. The MPFA could develop similar programmes and train volunteers with more MPF investment experience to help passive investors make better decisions.
Zixuan Zhang, Kowloon Tong