Mar 8 2017, 01:13 PM
QUOTE(dasecret @ Mar 8 2017, 10:23 AM)
Let me trigger some discussion here
while your points are correct, there's one more item you have not considered
The effective expense ratio is higher for PRS funds that takes a feeder fund model because unfortunately the way PPA structure the fund, the mother funds have their management fee and expenses; while PRS funds management fee portion is not double counted; the expenses are incurred in both mother fund and PRS fund. So although you saved on sales charge; which is one off; every year you pay slightly more on the expenses. And in someone's books, that's totally unacceptable; for me, the tax savings still justifies it
for details on this I'd suggest you look into old discussion on the PRS thread involving myself n xuzen.
Since investing 3k in PRS can get tax rebate, will it be better if I diversify the 3k into 3 PRS funds?while your points are correct, there's one more item you have not considered
The effective expense ratio is higher for PRS funds that takes a feeder fund model because unfortunately the way PPA structure the fund, the mother funds have their management fee and expenses; while PRS funds management fee portion is not double counted; the expenses are incurred in both mother fund and PRS fund. So although you saved on sales charge; which is one off; every year you pay slightly more on the expenses. And in someone's books, that's totally unacceptable; for me, the tax savings still justifies it
for details on this I'd suggest you look into old discussion on the PRS thread involving myself n xuzen.
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