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MPF: how to boost returns?

  1. #1
    bdw
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    MPF: how to boost returns?

    MPF is something I have never given a shit about. $1500 gets deducted from my salary every month, my employer supposedly does the same, and as far as I am concerned it's a write off and gone into some black hole.

    But now I'm getting a bit older, I've been in HK for over 10 years now so it's built up to an amount where I am just starting to take notice of. After 10 years I just figured out how to login to the AIA website (their system sucks) and wow I have $414k sitting in here now. Awesome, I better update all my excel spreadsheets of my net worth, assets, etc and maybe it's not a black hole after all and I can afford a few more beers on Friday night!

    But here is the thing. Over approx 10 years my employer and I have contributed $337k into this fund (it used to be $1200 per month before increasing to $1500). But today's value is only $414k. With my limited mathematical skills this equates to around 2% compounded growth per year. This sucks doesn't it? I thought I selected an aggressive strategy 10 years ago. I've got 50% going into an Asian equity fund, 20% greater china equity, 10% HK equity, 20% fidelity growth.

    AIA website allows me to reallocate this. What should I choose in order to boost this crappy 2% return so I can increase the number of beers I can afford on Friday night? Thanks

    Andy SNK likes this.

  2. #2

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    Its the shitty fees that get charged by MPF providers.

    Suggest you just stick it all in the DIS which should have the lowest fees.

    rsl and kittykaitak like this.

  3. #3

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    1) First two para are very very un-bdw
    2) The Mandatory Provident Fund Schemes Authority (MPFA) announced today (26 January) that the annualized 15-year investment return of the Mandatory Provident Fund (MPF) System was 3.1%.
    3) Considering your titanium ball decisions on other investments, i would go for 'Core Accumulation Fund' and save on fees rather than expecting higher returns from MPF..

    vyral_143, bdw and rsl like this.

  4. #4
    bdw
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    MPF is just something I have always avoided and put in the too hard basket

    So AIA have this option called "Auto Asset Rebalancing" for "members with especially busy schedules". Are you guys saying if I click the NEXT button on this page I am going to get better returns than I am now?

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  5. #5

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    Better check Fund expense ratio, should be around 0.75% and name should be 'Default Investment Scheme'/'Core Accumulation Fund'..


  6. #6
    bdw
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    Well if I click this NEXT button it then calculates my age and tells me I should retire in 2042 and asks me if this is acceptable or I want to retire earlier. I don't know the bloody answer to this now so I backed out of it. I just want a simple aggressive strategy with low fees to gamble away this money I didn't even know I had.


  7. #7

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    Quote Originally Posted by bdw
    Well if I click this NEXT button it then calculates my age and tells me I should retire in 2042 and asks me if this is acceptable or I want to retire earlier. I don't know the bloody answer to this now so I backed out of it. I just want a simple aggressive strategy with low fees to gamble away this money I didn't even know I had.
    Doesn't exist in MPF world.

  8. #8
    bdw
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    Alright I found a "Core Accumulation Fund" amongst all these choices. But for the life of me I cannot find anywhere any reference to fees. They must be hiding the fees pretty well. I might do a bit more research before switching everything over to this one. Not sure if I should be mix and matching or just chuck 100% all into one.

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    bdw likes this.

  10. #10
    bdw
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    Quote Originally Posted by nivantj
    Thanks. These bastards charge up to 1.93% in fees for the other funds! I better switch to the 0.75% or 0.99% ones only then.
    Fei88 likes this.

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