Hi all, would like to clarify about PRS. I went to 1 of the CIMB branch to enquire about their fund, what I'm being told:
1. the PRS won't give me any interest/dividend;
PRS funds is also a Unit trust funds. The amount of money you have before or after Dividend distribution of unit trust funds remains the same. Thus it does not matters to most if the funds gives out dividend distribution.
CIMB Prs funds is not expected to gives out distribution and even if they do gives out, most probably they will reinvest back into the fund as extra units.

2. temporary up/down of the price is not going to affect me, so I basically can just buy it any forget about it;
you can forget about it temporarily, BUT not too long as you need to monitor the performance of the funds to make sure that they performs as per its peers.....if it performed the worst among it peers for 1 or 2 yrs...time to review the need to change to another PRS

3. and therefore the performance of the fund almost doesn't matter to me, until I'm 55 years old.
if the fund performed1~ 2% less than its peers yearly,....how many % will you lose out at 55 yrs old?

Is this how PRS works?    so I basically don't need to care too much on the performance of the fund? As I will know the "result" only after almost 20 yrs later.
ONLY if you don't mind the possible lesser returns when compared to other peers after 20 yrs

Really not worth it. The only advantage for PRS is tax benefits but then even then those companies has already "accounted" for those advantage.

I see, so means the performances still does matter and I might need switching fund from time to time.

If 1 yrs after my purchase and let say the fund price has increase by 5%, and I’m performing the switch, is the concept the same with stock - my profile will “sell” the fund at current price and earn 5%, then “purchase” the new fund with that total of 105% amount?
YES, and there maybe some "fees" involved ...do check your fund's prospectus.
also if you want to switch to another fund house, it may takes some times...(heard some may takes months)
Not sure whether this is a good timing, but I’m doing this too late as it’s already Dec and have to make a purchase although I saw some fund is near the peak at the moment
the current peak may be low compared to next new higher peaks     
you just got no choice even if the prices are high IF you want to take the tax reduction benefits....

Really not worth it. The only advantage for PRS is tax benefits but then even then those companies has already "accounted" for those advantage.

the current peak may be low compared to next new higher peaks   
Haha, you're right

you just got no choice even if the prices are high IF you want to take the tax reduction benefits.... :biggrin:
Ya the main purpose is for tax reduction. OK, now I shall do more homework myself and decide which fund to go for. Thank you so much on your prompt reply   

I see, so means the performances still does matter and I might need switching fund from time to time.

If 1 yrs after my purchase and let say the fund price has increase by 5%, and I’m performing the switch, is the concept the same with stock - my profile will “sell” the fund at current price and earn 5%, then “purchase” the new fund with that total of 105% amount?

Not sure whether this is a good timing, but I’m doing this too late as it’s already Dec and have to make a purchase although I saw some fund is near the peak at the moment

I only go for the tax relief which there is until 2021 and then I will stop contributing I guess

Just take advantage of the tax relief.

I don't even understand what people mean by companies has already "accounted" for those advantage, they understand the rebates are offered by the government and they are just fund providers right?

Any fees they charge are well documented and it's really not much different than one blindly throw money into UT.

After the tax relief ends I'd stop as well.

I withdrew all my PRS funds early this year (after reaching 55) but now I decided to contribute back. In order to eligible for tax relief, do I have to contribute back all the funds I withdrew plus a new contribution or just a new contribution? Thank you.

Anyone know what the penalty charges amount for taking out all the fund from PRS acocunt??

Hi all, would like to know any benefits of top-up (same fund) via PPA vs Public Mutual Online (PMO)?

i.e.: I already have a fund with PMO and PPA account, understand PMO will charge 3% as sales charge, if i top-up 3K via PPA, will i kena the 3% sales charge too? and i saw PPA will charge admin fee RM 0.50 + annual fee RM 8, is it true?

If top-up via PMO, will not have RM 8 annual fee, right?

Thanks

PPA is the administrator for the whole PRS thingy. The annual RM8/per fund house is imposed by PPA. You cant run away from it. However, the fee only kicks in if you purchase any PRS in that year.

hi, thanks for reply, which mean if i perform top-up only, both PPA portal / PMO portal are same, will impose 3 % sales charge for Public Mutual fund.

that i do not no, hence i didnt answer that part.
though i would have assume that since the 3% is actually charged by your fund house, in your cause public mutual, it will still be same regardless where you purchase it, unless PPA wants to absorb it, which is unlikely.
and thanks to you. i just realize PPA also charge 0.04% annual management fee. on top of the annual management fee by the fund house