2024 first quarter MPF fund performance review
Global markets continued to rally in the first quarter of 2024 on the hope of pre-eminent US rate cut as inflation continued to be under control. According to MPF Ratings, MPF funds rose an average of about 2.47% in Q1 2024.
In Q1 2024, most of the equity and mixed assets funds all in positive territories while bond funds and HK and China equity funds suffered losses.
The following is a snapshot of near, intermediate and long term performance of some popular MPF fund categories from market-leading MPF providers:
Among equity fund categories, the gap between Hong Kong and China equity funds and others further widened as US and global equity funds are among the best performing while HK and China fund category are the worst in Q1 2024.
Global equity funds continue to be a good choice if you are looking for growth with a long term horizon as they offer diversification across countries and industry sectors instead of putting all eggs in one basket.
If you would like further asset diversification by increasing allocation of bond, the core accumulation fund category is a good option. It is the more aggressive one of the 2 funds made up of the default investment strategy (DIS) and its near and intermediate term performance has also been decent. With a 60/40 split in equity/bond asset and low fund expense ratio of less than 1%, it offers a good balance of risk and return with global and sector diversification.
In the MPF and investment world, high fund management fees will not guarantee better performance and low fees leave more capital to work for you and may provide better odds to outperform in the long run. Some of these global equity funds and all core accumulation funds offer low total expense ratios (less than 1%). Beside fund costs, MPF members can also periodically review and consolidate own portfolio allocations according to the investment objectives, timeframe and risk tolerance levels.
Please contact us if you want more information about the fund choices from various MPF trustees.
Last Update: 26th April 2024