Like many others, I initially invested in PRS primarily for the tax relief. The math is simple: if you are in the 12% tax bracket, you effectively receive an immediate 12% return on your investment in the form of tax savings before the fund even starts to grow.
I have been investing in PRS for 14 years. Below is my actual portfolio data, followed by a detailed comparison to show whether it truly beats the EPF.
My Actual PRS Performance:
| Fund Name | Units | Cost Price | Current NAV | Total Cost | Total Value | Total Gain | Gain % |
| Principal PRS Plus Asia Pac Ex Japan (C) | 40,547.96 | MYR 0.8898 | MYR 1.2085 | MYR 36,080.00 | MYR 49,002.21 | MYR 12,922.21 | 35.82% |
| AHAM PRS Moderate Fund | 7,211.91 | MYR 0.4160 | MYR 0.7095 | MYR 3,000.00 | MYR 5,116.85 | MYR 2,116.85 | 70.56% |
| AHAM PRS Conservative Fund | 7,681.18 | MYR 0.3906 | MYR 0.6020 | MYR 3,000.00 | MYR 4,624.07 | MYR 1,624.07 | 54.14% |
| TOTAL | MYR 42,080.00 | MYR 58,743.13 | MYR 16,663.13 | 39.60% |
To see if I made the right choice, I compared my total PRS gains (Market Gain + Tax Savings) against what I would have earned if I had put that same RM 3,000/year into EPF at an average dividend of 5.9%.
| Feature | PRS (Your Portfolio) | EPF (Conventional 5.9% Avg.) | PRS @ 12% Relief | PRS @ 19% Relief | PRS @ 24% Relief |
| Total Invested (14 yrs) | RM 42,080.00 | RM 42,000.00 | RM 42,080.00 | RM 42,080.00 | RM 42,080.00 |
| Market Gain / Dividend | RM 16,663.13 | RM 24,298.36 | RM 16,663.13 | RM 16,663.13 | RM 16,663.13 |
| Total Tax Savings | N/A | RM 0.00 | RM 5,040.00 | RM 7,980.00 | RM 10,080.00 |
| Total Net Benefit | RM 16,663.13 | RM 24,298.36 | RM 21,703.13 | RM 24,643.13 | RM 26,743.13 |
The Key Takeaways
The 12% Bracket: If you are in this bracket, EPF is actually the winner. The steady compounding of EPF dividends (RM 24,298) beats the combined market gain and 12% tax saving of PRS (RM 21,703).
The 19% & 24% Brackets: This is where PRS becomes a powerhouse. At the 24% bracket, I am RM 2,445 richer by using PRS instead of EPF.
Myth Busted: PRS isn't just about fund performance; it's about the Net Benefit. Even if the fund underperforms EPF slightly, the tax savings often bridge the gap for high-income earners.
My Advice: If you are in the 19% tax bracket or higher, max out your RM 3,000 PRS relief every year. It is a "guaranteed" boost to your retirement nest egg that the EPF alone cannot provide.