The chairwoman of the Mandatory Provident Fund (MPF) Schemes Authority, Ayesha Lau, on Sunday called on the public not to be overly concerned about market fluctuation, stressing that the scheme is "a very long-term investment".
Lawmakers recently complained that workers who are due to retire soon may be hard hit by the poor performance of the fund in the past year.
But Lau said on her blog that the current short-term performance of MPF does not represent its performance over the whole investment period
She noted that in the 22 years since the MPF's introduction, it had recorded positive returns in 14 years, adding there were normally rebounds after the years with negative returns.
“Switching MPF funds after a significant drop in the market can easily lead to a situation of ‘buying high, selling low’, turning short-term fluctuations into actual investment losses,” she said.
Lau reiterated that MPF is a very long-term investment, so members should not treat it with “a short-term speculative perspective”.
She urged the public to review their MPF investment portfolio regularly and take into consideration factors such as their stage of life, risk-tolerance level and personal investment goals.