Not too sure what is their performance

Er... what gives you guarantee 20% return in this world?

Even if this money is stuck for 20years, it's not like this money won't grow at all, maybe it will not be much, I doubt it will be that bad that 20years later it is negative growth. If 3-4% a year, equivalent to fixed deposit, alot of ppl are happy.

Also... the money you save, can be use to make more money. If not, at least still can dump into housing loan, reduce some interest right?

I think most probably depends on
when you participate,
how you participate,
what you buy,
at what allocations and
for how long .....

This post has been edited by T231H: Mar 7 2017, 08:14 PM

If you really hungry for more Money, you will try read by yourself but not only seen/ heard ppl invest.
investment always is make your money work for u.

I started PRS for tax relief purpose, with gov incentive bonus.
it really does help in tax relief, I never pay tax for pass 3 years after PRS, only pay the money PCB, and can get extra money refunded every march when report tax.

And all the PRS funds in brought look quiet positive, more than 3-4 % p.a. return.

Be aware, the 1k gov incentive got a term that, u must buy 1 k of same fund in a calendar year and must be less than 31st years old

In current world, when someone told you a guarantee return more than FD, it will be always fishy.

How do u guys allocate your PRS portfolio ,some growth , some conservative , some reit or only concentrate on one PRS fund? How often do you switch the PRS?

It depends on your risk appetite and age.

If I'm still at 20+, I'll full force in Growth fund.
If I'm at 50+, maybe I want something in Conservative plus REIT.

So, very subjective.

This post has been edited by David83: Mar 7 2017, 09:13 PM

Buy 1 only.No point getting so many PRS funds.

CIMB-Principal PRS Plus Asia Pacific Ex Japan Equity - Class C which feed into Ponzi 2

Maybe not all banks impose sales charge for PRS. Last year I bought 3k worth of PRS from CIMB and there was NO sales charge. However there was a RM10.60 PPA fee. But the fund choice is very limited.

This post has been edited by biastee: Mar 7 2017, 10:29 PM

If we don't enjoy the 1K government money for PRS , is there any reason we should open a PRS account? I can't see any.

tax relief. working class joes like me hate it when majority of our taxes goes to the Goverment.

You are guaranteed to get the tax relief of 2X%. A ringgit saved IS a ringgit earned!! Plus the 0% SC is another 0.5% - 2% guaranteed.

This post has been edited by dexk: Mar 8 2017, 12:08 AM

True, that instant tax relief money could be put to good use..
But i think ppl should give this a thought and think about the long term vs short term benefit of this..
Imean this is fsm thread right? Im assuming most ppl here are actively managing their money and could get a better yield of >1%pa than prs fund right?
And that is assuming that your tax bracket is near the higher tier... If lower tier then its more at disadvantage

I'm afraid it was my own spiel. If it was a copy & paste job, I would give the link to that webpage.

I don't think Feng said anything about any guarantees. The 'instant return' was from the tax relief - which could be about 20%, more or less, depending on your tax bracket.

He was just pointing out that if there is still 20-30 years before reaching 55 to withdraw without any penalties... then the upfront benefit will be amortised down to less than 1% per year.

His query was: Given the poor choice of limited PRS funds to invest, is it worthwhile to go PRS instead of a normal UT fund for such a long term investment?

Well, if one is already having some UT funds, maybe choose the PRS fund that piggy-back feeding into the UT fund you already have.

If the tax relief is not high, then maybe it is not worthwhile to have 2 separate accounts on the same fund...

Anyway, I would still advocates VA or DCA... regular purchases, instead of plugging in 3k just before the Dec 31st deadline when the markets are on Xmas rally.

Based on the 3 year annualised return of CIMB PRS Asia Pacific Class C - 12.75%

If one really put RM 3000 (RM250 per month) every year inside since 25 years old, by 55 years old, you will get RM 895k when you finally can withdraw.

Disclaimer: Past performance do not indicate future performance and you have to live until 55 yo

Attractive? Not counting the tax relief you get too. Correct me if I''m wrong





This post has been edited by Nemozai: Mar 8 2017, 12:51 AM

Hi newbie here. I was searching about PRS funds and got here. Decided to drop my 2 cents. I'm an advocate of buying PRS cos I'm from the middle class and we being the 'middle child' hardly get any benefits from govt ever so got to say this is one way to get back some money. So far so good, bought Affin Hwang PRS Growth Fund, govt topup another RM500, got my tax relief too and fund still in the green n growing n return better than FD. As long as u don't put more than 3k per year then shd not be a problem. Also, to those below 30 and still contemplating, at least go buy 1k so that u get another 1k from govt now.

Did u really pay tax? 3k tax relief for a monthly income of 3k also less than 10%.
it just minus your total taxable income, which may change your grp of tax. eg if ur total income 50k, tax 16%, minus 3k become 47k, tax 10%, save 6%.
thise SC thing is not a type of guarantee too, as if u put in Maybank GIA have more tuan 3% pa. even in kids saving acc got 3.15% just by put the money and can withdraw anytime.

PRS 3k per yr, to reduece money give to gov, and make it become urs, same time prepare retirement.

As survey, only 34% malaysian saving for retirement, and only 35% percent of kwsp holder is having enough amount for their retirement.
this is the idea of PRS come.

This post has been edited by fense: Mar 8 2017, 06:27 AM

even at lower tier, you still save. because tax charge you every ringgit after the lower their.
like 55k, first 50k u pay 2.4k, then next 5k u pay 16%,= 800
after prs 52k, same pay 2.4k then left 2k pay 320. save 480.

hm.. i think U are assuming all PRS funds returns <=1%pa?
heheh. please do check first - not all PRS funds as as "good"

as for short vs long term, er.. dont U think think equities will "grow in price" in the long term due to inflation, economic growth, etc?
isn't that long term thinking?

also - the tax relief, be it <=15% or >=24.5%, isn't that also long term thinking? every year, "make" that % and use the cold hard cash for FD, stocks, mortgage extra paydown, etc.?

in addition - those below 30s, with the Gov extra incentive.. still not worthwhile?

hm.. U running your own biz returning way more than the combined above in %pa terms?
if so, good BUT the above is passive or non-active income/assets.
if one wishes to compare active income - IMHO, better to use things like trading in options, forex, futures, margin stocks & flipping properties.

no absolute right/wrong, just perspectives


On the aspect of "amortised down" over 20-30 years, i've done similar Excel sims on SSPN (lagi worse, FD rate++ pa only but with tax relief). If every year we get the tax relief for new $ injected, even if SSPN fell from $6K to $3K next year onwards, it will still be worth my time to do SSPN for the next 15 years due to the total IRR pa% (Excel's XIRR). Note - i was already on SSPN since 2008, not "virgin" - lagi worse (longer time frame ma).

Thus, similar calculations/logic will be for PRS and the additional bonus is if one does equity PRS, equities generally rise in the long run due to inflation, economic growth, population (sheeples?) growth, etc.

This post has been edited by wongmunkeong: Mar 8 2017, 07:01 AM