most of the fund I know are benchmark against invested equity market index, except some using annualized return benchmark.

for fair comparison, we should include the KLCI index as well, and here is what the number try to tell us:

FBM KLCI

-2.02%

8.02

1. if you (100%) invest in local stock market like KLCI index fund, after 3 yrs you get negative return with 8% volatility.
2. PRS core fund structure of equity/bond is designed such a way to reduce volatility and smooth out the longterm return through up-and-down cycle.
3. example core growth fund (70%) reduce volatility to 6%, yet get 5% positive annualized return.
4. you can choose to lower the volatility further to 5%, with core moderate fund (60%), still get 4% positive annualized return.
5. if you are at the end of your investment plan and going to cash out soon, core conservative fund (20%) will give lowest volatility of 2%, which give you the enhanced fixed income return of 3%.

PRS is design in a way that you still need have some DIY effort over the default core fund:
step 1. age before 40: core growth fund
step 2. age 40-50: core moderate fund
step 3. age after 50: core conservative fund

unless we have introduce "PRS core target date fund" which will auto the three steps for you.



This post has been edited by asimov82: Feb 7 2017, 10:33 AM

Since you bring KLCI to the table, I suggest you compare it against Kenanga OnePrs Growth Fund

EDIT: For extra comparisons





This post has been edited by AIYH: Feb 7 2017, 10:51 AM

kenaga growth fund is few of the exceptional that does not demonstrate "index hugging" behavior (blend with large/mid/small cap) ,
and cimb one is using 8% annualized return as benchmark (but you can compare it with asiapac-x-jp index)

This post has been edited by asimov82: Feb 7 2017, 11:06 AM

That is what majority of funds are being using. Benchmark against KLCI or some other indices.
But as for PRS funds, benchmark against KLCI is not accurate IMHO because PRS funds are supposed to supplement to EPF and is hoping to match or beat EPF returns. Otherwise, it is just a redundant of existing funds in the market.

Just my two cents.

AIA Suxs!

AHAM FTW!

CIMB FTW x 100

Xuzen

From above fundsupermart link check on 3rd years volatility AIA just average performance.

So for beginners start with small capital would you suggest CIMB?

Today being suggested Ambank Reits by their RM, in chart result, seem above average.

Sorry again, newbie in investment.

This post has been edited by Eddy924: Feb 7 2017, 07:58 PM

Which chart you use ya? Comparison done by aiyh has a few prs funds. Am asia pacific reits has been doing well, thanks to weaker rm.

To me being beginner is not thethe factor. The factor conventionally used is how far away from retirement. Further you are, the more risk you are supposed to be able to absorb.

The 3 good funds
Cimb PRS Asia Pacific
AmPRS REITS
KenangaPRS one (only pick this if you are confident with Malaysian economy)

I cannot suggest anything for you as I have no idea who you are nor what sort of circumstances you are in. But i can share with you my train of thoughts so that you can decide whether my logic / rational suits you or not.

I) PRS to me is a very passive investment and I will not be actively monitoring it unlike my other Unit Trust Investment. It is going to be a very long term investment.

II) I participate in PRS mainly for the tax relief.

III) A large chunk of my net worth is in KWSP and it is a known fact that KWSP is mainly exposed to Malaysia stock market and bond. Indirectly my assets are mainly exposed to Malaysian stock market especially government bonds and blue chip counter and index linked stocks.

IV) as such when I invest, I will select investment tools that are not exposed to Malaysia otherwise I will unwittingly increase my concentration risk.

V) Hence, when I choose a PRS, my criteria are:

A) Preferably zero sales charge, which is a no brainer.
B) Cover as broad geographical area as possible.
C) Low risk or volatility.
D) Decent return, better or at least on par with KWSP.

Due to the above criteria, I narrow my PRS selection to Affin Hwang PRS Moderate because it satisfy A), B) & C)

Due to the above criteria, I narrow my PRS selection to CIMB Principle PRS Asia-Pac Ex Japan Equity because it satisfy A), B) & D).

With regards AMReits PRS, I reserve my participation because it is sector specific and as such being a thematic play, I will avoid it as I have to monitor it actively.

Xuzen

Thank you so much for spending time written down and share ur valuable opinion, insight

Really appreciate!!!

How can we apply automatic monthly deduction from bank account to purchase CIMB PRS fund via Fundsupermart?

In my opinion, it is better for you to FPX your money into FSM's CMF, park your money there, let the RSP do the job by doing monthly deduction from CMF every 15th

But I can't see any PRS funds under RSP.

goto FSM MY
click FUNDS SELECTOR
select PRS PROVIDERS
in the list of PRS funds.....select FUNDS INFO TABLE tab

they have the RSP minimum amount listed.

For PRS funds, you need to make an initial investment before you can RSP

most honest opinion

The best part of PRS is switching with other company out there, with after minimum switching duration is about MYR25. If you do not satisfy, say with AIA and then Kenanga or etc, you can jump ship. This is the beauty of PRS that UT do not have, when everything well taken care of by PPA.

Invested Gross RM1,000 in Oct'16, just before I reached 31. Haven't seen the Youth Incentive Scheme of RM500 yet. It has been +-4 months already.

Question is, how long does it usually take for the money to be given?

xuzen / Ramjade, may we have your thoughts on Affin Hwang Growth/Moderate funds?

Since you manage to tag the post that they say suxs, didnt you read past a post that xuzen talk about his thought process?