Hong Kong's Mandatory Provident Fund (MPF) system delivered strong results in July, with the All-Fund Performance Index rising 1.17% for the month and 10.13% year-to-date. July's investment gains reached HK$16.8 billion, averaging HK$3,500 per member, while cumulative returns since January climbed to HK$132.2 billion, or HK$27,600 per worker.
By the end of July, total MPF assets hit a record high of HK$1.45 trillion, marking an increase of HK$20.3 billion from June and HK$158.6 billion since January. The average account balance rose to HK$302,400, reflecting a monthly increase of HK$4,200 and a year-to-date gain of HK$33,100.
Equity funds were the top performers, particularly Hong Kong and the Mainland equity funds, which achieved a 3.78% monthly return and an impressive 22.98% growth year-to-date. This strong performance was driven by relaxed mainland economic policies, improved investor confidence, and attractive valuations compared to other markets.
The MPF system's growth demonstrates its resilience amid global financial fluctuations, significantly boosting members' retirement savings. However, financial experts stress the importance of portfolio diversification to manage risks and ensure long-term stability. Members are encouraged to review their MPF balances regularly through trustee portals or the MPFA's electronic platform to stay updated on their retirement savings progress.
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