Which PRS has the lowest management fee? I see that Versa has 1.8%. Tried looking into Kenanga and its not clear. Found a table online of other funds and they're lower but comes with other fees. Wondering what's the best now or just put everything into Versa
https://www.ppa.my/prs-funds-information/
There's no best. The ones with lowest management fees often have a sales charge. So you gotta evaluate whether you want to pay the fees up front, or let them chip away per year.
Take for example
AHAM PRS Growth -> No sales charge. 1.8% p.a TER.
AMPrs Growth D -> 3% sales charge. 1.5% p.a TER.The 0.3% TER difference will take 10 years to equalise. At face value, it's better in the long run to pay the sales charge straightaway. However if one were to consider inflation of 3% per year, that initial 3% sales charge will be equivalent to 5.4% after 20 years (assuming the 3% sales charge you put into a 3% p.a FD, while the rest is invested at 0% growth).
The 'growth' style funds also tend to have higher TER, possibly due to the way they generate the "growth"-like performance by frequent trading.
Long story short: tax relief is not free, it's being paid in the form of the TER and underperformance of the PRS fund you subscribe. Pick one and don't look back.
Admittedly my finance knowledge is not the best. But on your last paragraph, it seems you're implying that PRS is not really all that great and it almost does not matter what I pick? I'm interested to know if you've thrown any funds in one now. But thanks to your comment, maybe I'd just go with the Versa stuff due to convenience.
Greetings monyets!
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What a bad day to be literate
