Understanding fund performance review in just 1 minute
Whether you are looking to rebalance your portfolio or switch funds, our monthly Fund Performance Review will provide you with essential information. Take a closer look at the key information below:
1. Fund Expense Ratio
Shows the total fund expenses (including management fees) as a percentage of fund asset value1. Provides a more useful reference than management fees alone. Generally speaking, the lower the ratio, the higher chance you may get a better returns from your investments.
2. Fund Risk Indicator
Provides an indication of the risk level in a given MPF fund. The higher the Indicator, the higher the risk. Generally speaking, you should gradually reduce your investments in high-risk funds as you age.
3. Annualised Return
Records the fund’s annualised return over a period of 1, 3, 5 and 10 years and since launch. Useful for understanding the short- and long-term performance of a fund. As MPF is a long-term investment, it is advisable to more focus on a fund’s long-term performance.
4. Top Ten Holdings
Top ten investments of a fund , plus their respective percentages of the fund asset value. You may match your preference, for example, certain corporations or investment products, with the fund.
5. Asset Allocation
Investment distribution of a fund according to industry, region, equities and bonds, etc.
1The FER is calculated based on data from the previous financial period. It will not reflect any increases or decreases in fees, charges or expenses in the current financial period.