Which Private Retirement Scheme (PRS) Fund Is Better in Malaysia? Do Not Just Follow Rankings

Who this is for

This article is for someone choosing a PRS fund for the first time, or an existing member who wants to review a current holding.

If you have not decided whether PRS itself suits you, start with YFD's article on whether PRS is worth investing in. If your account is already losing money, use the framework here before reading our follow-up on whether to stay, switch or transfer.

One-minute fund check

The live page should include six questions. Readers answer yes, no or not sure:

1. I know whether this is a Growth, Moderate, Conservative or non-core fund.
2. I know the fund's benchmark.
3. I have checked its main asset classes, markets and currencies.
4. I have compared more than the latest one-year return.
5. I have confirmed its sales charge, annual fees and transaction charges.
6. I know what job this fund performs alongside my EPF and other investments.

The result should only identify whether the reader has enough information, needs more research, or is relying too heavily on a ranking. It should not recommend a fund.

Key takeaways

• Compare funds within the same category first. A Growth fund and a Conservative fund are doing different jobs.
• One-year performance reflects a recent market period. Three-year and five-year figures provide more context, but still do not predict the future.
• A claim that a fund has beaten the market is meaningless if the benchmark is not relevant.
• Similar fund names do not mean the portfolios, fees or unit classes are the same.
• EPF is already the largest retirement asset for many Malaysians. PRS should be assessed as part of that overall portfolio.
• Before switching or transferring, find out whether the real problem is the market, the fund, the cost, or a mismatch with your needs.

Why this year's winner is not a buying decision

PPA's 2026 PRS Fund Awards provide a useful demonstration. The awards recognised performance in 2025 as well as consistency over the three years from 2023 to 2025.

Within the same strategy, different measurement periods produced different award recipients:

These figures come from the PPA 2026 award document. They describe the periods shown in that document. They are not a current ranking as at this article's publication date, and YFD is not recommending any of these funds.

The lesson is simple. Change the question and the answer may change:

• “Which fund did better last year?” measures a recent period.
• “Which fund was more consistent over three years?” uses different evidence.
• “Which fund suits my next 20 years?” also requires risk, cost, holdings and your other assets.

A seven-step method for assessing a PRS fund

1. Start with the category, not the provider's name

Core PRS funds generally use Growth, Moderate and Conservative strategies. Non-core funds may focus on a particular market, asset or investment approach.

Having many years before retirement does not automatically make a Growth fund suitable. Being near retirement does not make a Conservative fund capital guaranteed. The category describes a broad risk approach, not a promised result.

2. Read the objective and benchmark

The benchmark tells you what the fund is supposed to be compared with.

A global equity fund should not be declared poor simply because it trailed the FTSE Bursa Malaysia KLCI in one year. It also should not be declared skilful merely because it beat the Malaysian market while investing in a completely different set of assets.

Use the product highlights sheet, disclosure document or fund report to find:

• the investment objective;
• the permitted asset allocation;
• the benchmark;
• the intended investment period; and
• the main risks.

3. Look at what the fund actually owns

Words such as “growth”, “retirement” and “Asia” do not tell you enough. The holdings create the risk.

At a minimum, check:

• the mix of equities, bonds and cash;
• Malaysian and overseas investments;
• concentration in a few countries, sectors or companies;
• whether currency risk is hedged; and
• overlap with EPF and your other funds.

4. Use more than one performance period

One year can be dominated by a single market event. Three-year and five-year figures are more informative, but can still cover a period that happened to favour one style.

Ask:

1. How did the fund perform against its benchmark and peers over the exact same dates?
2. What happened in both rising and falling markets?
3. Has any outperformance or underperformance persisted?
4. Did the manager, benchmark or strategy change during the period?

5. Treat fees as a long-term variable

Do not stop at the sales charge. Include the annual management and trustee fees, plus any switching, transfer and withdrawal charges that may apply later.

Unit classes can also change the cost. As at 31 August 2026, PPA's comparison page stated that Class A units in Manulife's core funds automatically convert to Class B at no cost on the tenth anniversary of the member's first contribution. The listed management fees also differed by class.

This is a Manulife-specific unit-class arrangement. It is not a universal PRS rule. Always record the complete fund name, unit class and source date.

6. Look at risk, not only average return

Two funds with similar long-term returns can give investors very different experiences.

Useful questions include:

• What was the maximum drawdown?
• How volatile was the fund?
• How long did it take to recover from losses?
• Is it highly concentrated?
• How much of the result came from currency movements?

The practical question is not whether the fund can fall. It is whether you can hold it without panicking when it does.

7. Put PRS back into your retirement portfolio

For many Malaysians, EPF already dominates their retirement assets. A PRS fund should not be selected as if nothing else exists.

Ask:

• What markets and asset types does EPF already cover?
• Is the PRS fund simply repeating the same risks?
• If other investments already provide growth, does PRS need to do the same job?
• How long is it until you expect to start withdrawing?

Henry's view

I would not begin by asking, “Which PRS fund has the highest return?”

I would first look at what I already own, especially EPF and investments outside EPF, and decide what this PRS fund needs to do in the overall retirement plan.

If EPF already makes up most of my retirement assets, I would not treat PRS as an isolated investment. I want to know where both pools invest, whether their risks overlap and how much time remains before retirement.

A ranking is a useful starting point for research. It is not a purchase instruction.

A fund that ranked first last year is not automatically the most suitable one. A fund with weaker short-term performance is not automatically defective. The difference may come from markets, asset classes, currencies or the period measured.

Before contributing, I want clear answers to four questions:

1. Where does this fund invest?
2. How much could it fall, and can I accept that?
3. Which benchmark and peer group should I use?
4. After costs, what job does it perform in my retirement portfolio?

If I cannot answer these questions, I would not rush in because the fund won an award, recently had the highest return, or was described as “the best”.

The right PRS fund for you may not be number one. It should be one you understand, can hold for the required period, and can justify within your retirement plan.

Fund comparison worksheet

Complete the same table for every candidate:

If a box can only be filled with “the consultant said so”, “my friend bought it” or “it was number one”, the research is not complete.

Common mistakes

• Comparing different fund categories in one ranking.
• Looking only at the latest year without recording the dates.
• Measuring return without benchmark or risk.
• Treating “Conservative” as capital guaranteed.
• Ignoring unit class and recurring fees.
• Replacing a losing fund with last year's winner.
• Ignoring overlap with EPF and other investments.

Next step

Complete the comparison worksheet first. If your question is what to do with an account that is already down, continue with “What Should You Do When Your PRS Is Losing Money?”

This article is for general education. It is not a recommendation of any PRS provider or fund, and it is not personalised investment, tax or financial advice.