Manulife says MPF members changed fund choices more frequently during pandemic, but decisions may be ill-timed
- Many members are swayed by market sentiment and a majority miss the best window for portfolio rebalancing, Manulife report says
- MPFA urges members not to try and time the market as it might result in ‘selling low, buying high’
The number of Manulife members who changed their MPF investment fund choices last year increased by 60 per cent from 2019 before the pandemic, according to a report released by Manulife on Tuesday.
“We observed that many members are influenced by market sentiment, who switch to high-risk funds when the market is hot and back to conservative funds when the market is in panic [mode],” said Wong Tak-chi, deputy CEO of Manulife Provident Funds Trust, in a media briefing to release the report.
“Majority of members miss the best timing to rebalance their portfolios,” he said.
The global stock and bond markets have been volatile over the past three years due to a combination of reasons ranging from the pandemic and interest rate movements to Russia’s invasion of Ukraine, according to analysts.
