Be aware that what u recommending is a higher risk fund.

The Aham moderate PRS fund is a 60/40 fund, which is a a balance risk portfolio. Its unfortunate that this year is one of the worst year ever for a 60/40 portfolio, as the 40 cushion didnt work. Likely what happen this year wont repeat next year.

N its also not a Malaysia only fund. Its 50 Malaysia n 50 foreign Fact sheet says that after Malaysia, next biggest counrry allocation is the USA at 15%.

Higher risk u will expect to get higher returns long term..but no guarantee. And past performance is ...

I guessed as much. That is just a feeder fund into the Principal Asia Pacific Dynamic Income Fund. which is 90+% invested in Asia Pac Ex Japan equities. Based on factsheet, biggest country allocation is HK China (15%).

This post has been edited by Cubalagi: Dec 23 2022, 12:14 AM

But US market not looking so good nowadays

What is long term for you? How many years of red or bad returns before u say enough?

As you grow older, you will realize that 55 isnt that old and, before you know it, you are there.

And its not about enjoy later, its about living a dignified life and not overburdening others for about 20 years or so with no active income.

2025 is the expiry of the tax relief. It could be extended again depend on MOF.

Its worth it because otherwise this money is going to the government. And one of the secret to grow wealth is to minimize taxes.

And 720/3000 is 24% immediate return. Think about it this way

U invest RM3k to PRS but u also put the RM720 relief into PRS making it RM3720. Lets say the PRS is a mediocre one but managed to get you an annualized return of 4% over 5 years. Your balance should be about RM4500. Thats about 8.5%% pa. returns which is pretty decent.

U dont have to put into PRS, you can also put the RM720 in a higher return investment for even better results.

But if you just spend the RM720 normally, then you wont feel any difference.

This post has been edited by Cubalagi: Dec 24 2022, 11:28 AM

3 more years..23, 24 and 25.

Here Im hopping for the govt to increase the relief for both PRS n kwsp to help build up retirement savings, because a retirement crisis is heading our way.

I dont depend on the govt, but I take back what I can as I pay lots of taxes. For eg I use RON95.

Your number 1 has -14.01% in 2022 and 2.95% return in 2021. 5 year annualized returns is a mere 1.82%. However, 10 years annualized is a good 8.49%. Basically, the fund did extremely well in the first 5 years but, in the more recent 5 years it basically suck, with bad years cancelling much of the gains of the good years within the last 5 years.

* source from FSM

This post has been edited by Cubalagi: Jan 1 2023, 09:51 PM

Im paying 0% SC for my PRS investment. I invest directly to my PRS provider AHAM.

I actually thought this is normal for all PRS, but the question above makes me wonder about others.

Wow..3 percent kind of sucks.

You have to differenciate between Sales Charge and Management Fee.

The 3% is the max sales charge and is one off upfront for new investments. Say u invest RM1000 at 3% SC, your investment is only RM970.

Not all PRS charges 3%. For my AHAM PRS it is 0%. Meaning if I put RM1000, all.RM1000 gets invested.

Management Fee is charged on the AUM annually, the percentage varies by the type of PRS, usually between 1%-1.5% per year. This fee is taken out of the fund i.e. you dont directly pay it, but it will affect the performance of the fund.

Basically, if you read the fund return is 6%, then it would already be net of the Management Fee.

This post has been edited by Cubalagi: Mar 9 2023, 03:28 PM

Tsmc is Taiwan

What sort of US weightage u want? Dont think there is anything above 50.


This post has been edited by Cubalagi: Mar 9 2023, 07:33 PM

Correct, but looking at the terrible performance, it probably suffered a big default as well.

And this is a dead fund as AUM is just RM10k!. Meaning all investors have already switched/withdraw earlier. The small balance would suffer from higher costs dragging down performance further.

Last year was an "ordinary" bear merket for equities. However, it was the worst bear market for bonds in history of the modern financial market. We are still seeing the reverberations of this eg SVB collapse.

Having said that, investment is about looking forward to the future. Im looking towards a probabilitu of reversion to the mean this year or next.

At your age, early 30s, you might not need to buy and hold bonds. But I think can stil be considered tactically in a DIY portfolio.

Because EPF is fixed price. You want the price to go up when interest rate drop eg due to recession. Then you sell for capital gains and then reallocate to equities.

How do u think bond smoothen volatiility? How is it different than cash then?

The answer is in the potential for capital gains in certain market environment where equities tend to do poorly eg recession.

This post has been edited by Cubalagi: Mar 28 2023, 11:08 AM

That and also moving in the opposite direction. Theoretically.


This post has been edited by Cubalagi: Mar 28 2023, 11:18 AM