For PRS no need to nit-picking / split hair / time the market / or do asset allocation lar...

Just put a standing instruction to your bank to auto-debit RM 250.00/mth into PRS and tutup mata. (RM 250.00 x 12 = RM 3,000.00)

The tax savings already win all liao.

Xuzen

If RM 250.00 also don't have in your CASA... you really pok-kai fellar!

Go back to Money Management Basic 101 before proceeding to Investing Basic 101!

Xuzen

Xuzen merajuk... tak nak fren you anymore.

My point was CASA is the most basic banking service and the first banking instrument for transaction and / or remittance of money, if RM 250.00 pun tadak...

You will realise that many some Insurance Company also have a UT division namely:

i) AIA offers PRS
ii) Manulife offers PRS
iii) AM Assuarance offers PRS

via their asset management division.

Xuzen

Ini orang pasti ASX / FD punya kaki.... interest rate LOL!

Xuzen

Is it me or do you all realise that this PRS thread is extra active during the end of the year?

Just some trivia:

I have just checked out Affin-Hwang PRS Growth Fund Interim Annual Report dated 1/1/2015 and there are 7 people holding 500,001 units and above.

These 7 pax are holding a total of 6,840,000 units. Based on 26/11/2015 NAV, this translate to RM 3,881,700; or equivalent to an average holding per pax of RM 554.5K.

Who in the FCUK wanna lock half a Million into PRS?

Mind boggling!

Xuzen

This post has been edited by xuzen: Nov 28 2015, 11:13 AM

Based on Affin Hwang PRS Growth Fund Annual Report dated 31st July 2015, page 11 of 41, I wish to highlight two expense items; namely:

I) Management fee: RM 17,103.00

II) Collective Investment Schemes Trade Settlement: RM 160,000.00. I believe the sales charge / transaction fees MNet mentioned is item (II).

Total number of units in circulation is 85,969,000 units. Based on NAV as of 27/11/2015 @ RM 0.5675/unit; the total asset value of the fund is 0.5675 x 85,969,000 = RM 48,787,407.50

The percentage of trade settlement = 160,000 / 48,787,407.50 x 100 = 0.3280% p.a.

How did you come out with 2 - 5% sales charge? You sound like another "suara-hebat feller"



Xuzen

p/s On page 27 of 41 under Note 4: Management fee, it is stated any management fee charged by the unit trust are fully refunded back to the PRS fund. Accordingly, there is no double charging of management fee.

This post has been edited by xuzen: Nov 30 2015, 11:08 AM

A quick glance on the Annual Statement and I believe there is no sales charge nor double charging of management fee levied on CIMB PRS Asia-Pac ex Japan fund.

Xuzen

Only PRS service provider that recalcitrantly charge a high 3% sales charge and yet, its return is mediocre only.

Real Sor-Hai lousy fund!

Xuzen

This post has been edited by xuzen: Nov 30 2015, 03:03 PM

The difference between a product pusher i.e., bank front line wealth advisor who will push the best product to the customer versus a Lic Financial Planner who will first analyse the client first.

For example: The LFC will most probably not recommend the CIMB PRS Asia-Pac Ex Japan Fund to a client who already has high exposure to Ponzi 2.0. He / she would provide alternative.

Xuzen

3.5k or 35K?

If 3.5K means you are an old geezer Insurance cost is eating up into your return lor....

It was 55 y/o since inception date. PRS never shifted the goal post...... "yet".

Xuzen

I glanced through the FSM thread and there was this discussion about putting into PRS versus regular UT versus EPF. I will post my thoughts in the PRS thread instead because the FSM thread is more cluttered.

My take as follows:

I)

EPF is mandatory by law. So it is no brainer, no need to think too much. What ever you decide also, the law says 11% from YOU! 12% from YOUR BOSS! Simple... no need to think so much.

If you are your own boss, then max it up to 19% on the Employer's side to reduce the company income tax. Period!

II)

PRS. The greatest benefit is the RM 3,000.00 tax incentive. Nothing more. Dump in RM 3K per annum to get your tax relief. Take advantage of those PRS that offer zero sales charge. Zero sales charge + tax relief = 4W3S0M3! Apa lagi lu mau?

As for my personal view, I dump in more than the RM 3K, coz I am those itchy hand type... see money must spend type. So I match the EPF account II into PRS to build the extra oomph for retirement. I decided not to go for Insurance based saving plans because those saving plans is mandatory i.e., mati-mati must pay, even when you are cash-flow tight. Whereas PRS is flexi, tight cash flow, can stop immediately or reduce the investment.

III) Regular UT

The greatest drawback abt regular UT is the sales charge although this can be mitigated by using online platform such as FSM and / or eUT. Another way is to get a UT license yourself to reduce the sales-charge.

Another way to reduce your incidental charges especially if you switch a lot is to use a wrap account. This wrap account is like the season pass of a theme park. You pay more upfront, but you get unlimited entries switching.

Xuzen

This post has been edited by xuzen: Jan 6 2016, 02:44 PM

The biggest benefit of PRS is the the tax relief part. Taking that relief into calculation, the actual return is around 14.XX%. Read back few pages for the calculation working.

Xuzen

I did not use Public Mutual Berhad PRS service. My ROI is still
positive after three years.

Do be careful with these saving plans... they are not "annuity" per se for the purpose of LHDN tax relief purpose. These saving plans may behave like an annuity plan but for the purpose of LHDN tax relied purpose, they are to be put under the same category as the tax relief column for Life / KWSP column instead of the PRS / Annuity column.

LHDN recognised "real" annuity plan are very rare, it was created sometime back but it is no longer in production; consider it like the Proton Satria R3 Lotus Tuned Limited edition. One off collector's item.

Xuzen

Should be actually 3 years; PRS was launched in Aug 2012. So 2012 not counted as it is not a full year.

2013, PRS concept is still in its infancy... only five fund house provide PRS. Number of PRS fund was around 15 - 20 only.

2014, slowly picked up, many firms start promoting to large corporation.

2015, more retail investor know about it...

2016, .....

Xuzen

p/s I started with Hwang in 2012, so for me I have been with them for four years already, each year RM 3K x 4 = RM 12K invested. My CAGR is around 7%. I use DDA method.

NB: Contrary to what ignorant people, I can state for a fact Hwang PRS is zero sales charge and its Management fee is around 0.5% p.a. and not 2.0% etc. Can verify with its annual report.



This post has been edited by xuzen: Mar 11 2016, 04:25 PM

deleted

This post has been edited by xuzen: Mar 14 2016, 11:05 AM

Theory versus reality.

In reference to page 33 of Affin Hwang PRS Moderate Fund Annual Report dated 31st Jul 2015:

I) The 2015 MER is 0.32%,

II The 2014 MER is 0.42%.

Xuzen

This post has been edited by xuzen: Mar 14 2016, 11:15 AM