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South China Morning Post

South China Morning Post

Hong Kong MPF on course for best return in 4 years this year; outlook 'positive' for 2025

South China Morning Post
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Mandatory Provident Fund is on course to report its best performance in four years in 2024 .

Most analysts believe next year's performance will remain on a positive trajectory.

MPF 's 379 investment funds had an estimated gain of HK$102.8 billion ( US$13.2 billion ) for this year .

US stock funds were the best performers so far this year , boasting a 21.5 per cent gain.

Yu urged MPF members to adopt a flexible asset allocation in 2025 rather than adopting an overweight position in equities.

"We will see quite severe corrections, caused by a potential reversal of the easy monetary policy of the US Fed as higher inflation threatens again," Yu said.

"Cash was trash in 2023 and 2024 . But it may be a more useful asset to own in 2025 .".