MPF Scheme Projects 6.6% Return for First Half of 2025

The Mandatory Provident Fund (MPF) scheme is projected to deliver a robust performance in the first half of 2025, with an average return of HK$17,900 per participant. This projection comes despite a volatile June, which saw the MPF scheme nearly incur a loss. The overall performance for the first half of the year is expected to be strong, with an estimated overall return of approximately 6.6%. This would mark the best first-half performance since 2019.

According to the analysis, the MPF scheme's total assets are expected to reach around HK$1.4 trillion by the end of June, an increase of approximately HK$143 billion from the end of May. This growth is attributed to strong investment returns and continued contributions from participants. The average account balance for MPF participants is projected to be around HK$291,900, an increase of approximately HK$3,000 from the previous month and HK$22,600 from the beginning of the year.

The strong performance of the MPF scheme can be attributed to several factors. Asian stock funds have led the way in terms of investment returns, with an estimated return of approximately 2.72% from the beginning of the year and 8.6% for the second quarter. Hong Kong and China stock funds are expected to be the best-performing asset class for the first half of the year, with an estimated return of 15.68%. This would be the best first-half performance for these funds since 2017 and the third-best since the inception of the MPF scheme.

However, the volatile performance in June highlights the risks associated with investing in the MPF scheme. Market fluctuations and economic uncertainties can impact the value of investments, leading to potential losses for participants. It is therefore important for individuals to regularly review their investment portfolios and make adjustments as necessary to mitigate these risks.

Despite the challenges posed by geopolitical tensions and external factors, the MPF scheme has demonstrated resilience. The total assets of the scheme have reached a historic high of approximately HK$1.4 trillion, reflecting the scheme's ability to weather market volatility and continue to deliver strong returns for participants. The chairman of Accumulation Rating, emphasized that while external factors can impact market performance, individuals should not panic and should continue to invest and diversify their portfolios to achieve their long-term retirement goals.

Ask Aime: What should I do to maximize my returns from the Mandatory Provident Fund (MPF) scheme?