Let’s talk MPF (Mandatory Provident Fund). Not the flashiest topic, but hey, it’s your future piggy bank! So here’s the scoop:
- The Good: Q1 ended with a nice 2.69% return, making it the 7th best start to the year since MPF launched in 2000. Hong Kong and China stocks were the best, smashing it with an 11.95% return—their second-best start ever.
- The Bad: March stumbled with a -1.34% loss with US stocks having a rough time to fall by -5.27%. And get this: the gap between Hong Kong/China and US equity returns hit a record 17%. Ouch.
- The Silver Lining: Despite the March loss, Q1 still bagged a $34.8 billion gain overall, or an average of $9,800 for each MPF member. If you’re an MPF members you’re now sitting on an average account balance of $279,100. Not bad, eh?
Lessons Learned:
- Don’t freak out and sell when things go down—it won’t make you rich.
- Diversify, diversify, diversify. Think “don’t put all your eggs in one basket”—it’s a cliche, but it’s so true.
- The Default Investment Strategy (DIS) funds are the slow and steady tortoise, not the flashy hare. Cheap, steady, and smart.
Looking Ahead:
Q2 might be bumpy—tariffs and trade wars are like bad weather forecasts for markets. But remember, you can’t control the market. You can control your strategy. Keep investing, stay diversified, and play the long game. In finance (and life), patience is your best buddy!
