Investment results of PRS funds over the previous 1 and 5 years
Although the PRS funds’ investment performance over the past year has not been great, it has improved during the course of the five-year extension.
The government created the Private Retirement Fund Scheme (PRS), primarily for those who desire to take extra steps to prepare for retirement. In addition to the Employees Provident Fund, the Private Retirement Fund Scheme (PRS) was created to provide consumers with another choice (EPF).
In our country, Private Retirement Schemes (PRS) are administered by distinct trust fund bodies, but are under the PPA’s oversight. Therefore, there is no question about the legitimacy of private pension fund systems.
PRS provides a lot of benefits. The freedom with which investors can select the trust fund units they wish to invest in is the first benefit. Members are free to use their judgement and select high-yield trust fund units. Investors in PRS are also eligible for an RM3,000 personal income tax break.
PRS also has two drawbacks, namely that members cannot calculate the required yearly return because there is no certainty that dividends would be paid every year. Investors in PRS will be charged a handling fee when they withdraw their deposits.
The RHB Retirement Series – Islamic Balance had an investment yield of 26.71% over the previous year, while Principal PRS Plus Conservative A and Principal PRS Plus Equity A had investment yields of 0.46% and 0.42%, respectively, according to a report made public on the PRS official website. This information’s time period is from August 2021 to July 2022.
Public Mutual PRS Equity and AmPRS – Islamic Equity D both offer annual returns of 5.32% p.a. and 4.56%, respectively, for the period from August 2017 to July 2022. The annual return offered by Public Mutual PRS Islamic Growth is 4.43%.
(The data is sourced from the PRS website.)
