ivmaniacvi, your calculation is wrong.

Initial investment for most funds is 1k for public mutual.

Management Expense Ratio is inclusive of Annual Management fee, annual trustee fee + miscellaneous fee.

The public ittikal fund return of 54.47% is in NAV value and already reflected the Management Expense Ratio.

Supposed you invested RM 1000 with 6.5% service charge. So it would be approx RM 935 NAV at the beginning.
At end of 1 year, it grows 54.47% and becomes RM 1444.29 (RM 935 * 154.47%).

So your net profit would be RM 444.29 which translate to about 44.43%.

Keep in mind that the Public Itikal is a moderate risk fund. You cannot compare it directly to islamic bond fund as they are 2 different things.

Regarding the Islamic bond fund, its service charge is only 0.25% and belong to conservative investment. So the net profit for islamic bond is still 5%+, well above the FD rate.

Bond is just like a loan. The companies borrow money from the investors instead of banks and pay the interest rate as per contract. As long as the company doesn't go bankcrupt, it pays you the interest.

Even if the company goes bankcrupt, it will sell off its property and pay to the bondholders before distribute the remaining to shareholders. A bondholder might still get full $ back from a bankcrupted company, but a shareholder cant for sure. If a company performs well, shareholders enjoys higher return in terms of share prices, but bondholders still gain the same yield as per contract. Basically its the risk and return.

Tax wise, captial gain (as in NAV raise value) doesnt subject to tax. Distribution (dividend) is taxable.

Hope it solves your doubt.