The stock market was weak, and MPF adviser Junlong said about 1.3 billion yuan of funds flowed into bond and currency markets in May.
Wang Yulin, executive director of Junlong Group, pointed out that the market converted a total of about 1.25 billion yuan to the MPF conservative fund in May; while the mixed asset funds with different stock components had a total of about 1.49 billion yuan outflow, which means that members are less optimistic about the stock market. view and move funds to more conservative funds.
Wang Yulin suggested that MPF members should consider their investment objectives and time limit when adjusting their MPF asset allocation.
He pointed out that the cumulative return of conservative funds in the past ten years is about 6%, which is lower than inflation.
He pointed out that members should seize the opportunity to adjust the allocation of MPF assets. It is expected that the rise and fall of the market will be affected by several major factors such as interest rate hikes in the United States, rising global inflation, the Russian-Ukrainian war and the development of the epidemic in China.
During the U.S. interest rate hike cycle, investors should be cautious in investing in the bond market, and the expected performance of bond returns may not be satisfactory.
In terms of overall return, Chun Lung pointed out that most of the top ten best-performing constituent funds are conservative funds since the beginning of this year. Among them, "Bank of Communications Joyful Retirement MPF Scheme Bank of Communications MPF Conservative Fund" recorded 0.2% Return, is the best performing fund.
In terms of the ten worst-performing constituent funds, most of them are equity funds. Among them, the "Sure Mandatory Provident Fund Scheme US Equity Fund" has fallen 28.3% year-to-date.