Mandatory Provident Fund investors each earned an average of HK$8,395, with Gum, Hong Kong’s MPF and Employee Benefits (EB) consulting firm, reporting overall positive results in most fund categories in January 2026.
GUM indicated that the MPF market had a strong start in the new year, driven by Asian equities. Equities and mixed asset funds saw significant gains, and fixed income funds maintained a defensive role.
The GUM MPF Composite Index rose 2.6 percent to 293.8 in January. Positive sentiment in the stock market drove the equity fund index up 3.7 percent, while the mixed asset fund index increased by 2.5 percent. The fixed-income market remained stable. The fixed-income fund index recorded a slight increase of 0.1 percent.
Greater China Equity Fund marked the highest return at 6.0 percent, followed by Asian Equity Fund and Hong Kong Equity Fund. This reflects a clear flow of market funds to markets with stronger growth momentum and more attractive valuations within the region. Japanese stocks showed a generally positive upward trend in regional markets. However, European Equity Funds, Global Equity Funds, and US Equity Funds only increased slightly.
Mixed asset funds best performed in the highest equity allocation (80% to 100% stocks), Preset Investment Strategy (DIS) funds, and Fixed income funds maintained their consistently stable performance.
The Mandatory Provident Fund Schemes Authority reminded MPF members that MPFs are long-term retirement saving tools spanning over 40 years and are highly unpredictable. For members who lack time or familiarity with managing MPF investment, they can consider the Preset Investment Strategy, commonly known as the Lazy Person’s Fund. It diversifies investment across global stock and bond markets, and its age-adjusted risk reduction mechanism effectively mitigates risk. Furthermore, the strategy also has a fee cap, indirectly increasing net investment returns.
Gloria Leung
