An Overview of Private Retirement Scheme funds
In this slowing phase of economy there are many people who make it a point to save. This helps them in handling their exigencies in a better way than others. Some save for their retirement as they know sooner the investment for retirement would start lesser the challenges they would face at the old age.
They start investing in various funds wherein they can get good returns to live a happy life in their retirement phase.
Some invest in government schemes and some in private schemes too. All these days they lived under the myth that the private retirement schemes are not associated with any risk.
Recently, there has been a warning issued by the experts in managing the fund that there is always a risk associated with these private sector funds.
Hwang Investment Manager Bhd Chief Product Officer Steve says, “Investors need to be reminded that no investment is risk free, which includes the PRF funds.”
He advises the investors to have a retirement investment which is simple, straightforward and low cost which will yield good benefits and has no hidden cost associated with it.
He also suggests going for long term investments as even if the market gets rough at a given period of time, it would surely smoothen up in the long run.
Experts always advice people to avoid making any investment in unit linked plans as their performance will vary according to the swings in the market. They suggest the investors to put their hard earned money into schemes which will have stability and will also provide them with regular returns.
“The Employees Provident Fund (EPF)” is trusted by people due to the amount of security it gives to money invested into it.
Long term retirement schemes comprise of a wide range of funds with different risk returns profiles.
Investing into a PRS fund is always a welcomed concept provided the performance of any such fund is tested and observed over a considerable period of time.
It is very important to look into the approval of a PRS fund by Securities Commission to manage any such fund.
CEO of CIMB says, “PRF should yield at least the returns which an EPF provides to the investors. This is important to gain confidence of the investors. ”
He also adds, “The PRS will provide an additional channel to save for retirement, where it exists to complement the EPF as well as to help those who do not have an EPF account.”
Experts inform that the returns from contributions made to PRS are not associated with a guaranty; it may fluctuate based upon the performance of the market.