Hong Kong residents have one of the longest expected lifespans in the world, making understanding investments and planning for retirement even more important.
Understand the characteristics of asset classes
Three types of asset classes are commonly used for investments: equities, bonds and cash.
* Investment risk comes from the fluctuation of returns of an investment instrument. Generally speaking, the higher the risk, the higher the potential return.
Basic investment information
Learn about your risk appetite
Your pension investment strategy is a personal choice as everyone has different preferences and goals.
The key to discovering your investment strategy is asking yourself what kind of investor you are:
- What do you want from your retirement investment (Investment objective)?
- How many years do you have until retirement (Time horizon)?
- How much volatility is acceptable in exchange for return potential (Risk tolerance level)?
What kind of investor are you?
Your preference provides guidance as to the proportion of equities, bonds and cash you should hold in your pension portfolio:
If your employer has chosen Invesco to be a pension partner, you will soon become an Invesco pension member.
If you have recently joined your company, you will have received an Enrollment Kit from your employer. Read the scheme details before making your fund choice and investment decisions.
Manage investment risk
Fluctuating political and economic conditions, coupled with changing interest rates and inflation often bring uncertainties thus pose risks to your investments. Diversification and dollar-cost-averaging are two investment strategies to help you reduce those risks.
Diversification
Investing in a single asset class concentrates your investment risk, you can manage this by spreading your investment across equities, bonds and cash. Invesco's pension schemes offer funds with different mixes of the major asset classes, catering to our members' needs.
Dollar-cost averaging
Trying to time the market is risky if not impossible. Dollar-cost-averaging is a strategy of investing the same amount regularly in the same investment. This disciplined strategy helps ensure that you invest when prices are low so that you reap the benefits when the market picks up. To achieve this, however, you must use this strategy continuously over a long period of time, which means that you maintain regular monthly pension contributions into your chosen allocations.