The investment performance of PRS’s funds over the past 1 year has been less than stellar, with only 1 fund posting a positive annual return. However, when viewed over a 5-year period, investment performance is still not too bad.
The Private Retirement Scheme (PRS) is a government scheme aimed at people who want to make extra preparations for their retirement. The purpose of the PRS is to give people a second option besides the Employees’ Provident Fund (EPF).
The PRS is managed by individual trusts in the country, but is overseen by the PPA established by the government. Therefore, there is no doubt about the legitimacy of the PRS.
PRS has a number of benefits, the first of which is that investors are free to choose the trust units they wish to invest in. PRS investors are also entitled to a personal income tax deduction of up to RM3,000.
PRS also has two disadvantages: there is no annual dividend payout guarantee, so members cannot determine the minimum return they will receive each year, and PRS investors will be charged a fee for withdrawing their deposits.
According to the report published on the PRS website, the investment return of RHB Retirement Series – Islamic Balance in the past 1 year is 23.20%, while the return of other funds are in the negative, the background of this data is from October 2021 to September 2022.
As for the period from October 2017 to September 2022, Public Mutual PRS Equity offers an annual return of 4.67% p.a., Public Mutual PRS Consevative offers an annual return of 3.75% p.a., Principal PRS Plus Conservative A offers a 3.44% p.a. annualized rate of return.
(Information from PRS website)
