PRS Fund Performance Malaysia 2026: What Investors Should Know
Updated with iFAST PRS performance data as of 31 October 2026
Contributing to Malaysia's Private Retirement Scheme (PRS) may provide eligible taxpayers with income tax relief while helping them build retirement savings.
However, tax relief is only one part of the decision. Once money is contributed, it is invested in a PRS fund, and the investment value can rise or fall depending on market conditions, the fund's investment strategy and its underlying assets.
1. How Have PRS Funds Performed in 2026?
According to the iFAST PRS Comparison report dated 31 October 2026, performance varied considerably across conservative, moderate, growth and non-core PRS funds.
The following examples illustrate this variation.
| PRS Fund | 2026 YTD Return | 3-Year Annualised Return |
|---|---|---|
| Kenanga OnePRS Conservative Fund | +2.45% | +4.62% |
| AHAM PRS Moderate Fund | +3.02% | +6.68% |
| Kenanga OnePRS Moderate Fund | +5.29% | +9.96% |
| Manulife Shariah PRS Growth Fund – Class C | +14.77% | +9.73% |
| RHB Retirement Series Growth Fund | +15.06% | +14.18% |
| AHAM PRS Growth Fund | +2.28% | +7.41% |
Source: Bloomberg Finance L.P. and iFAST compilations, as of 31 October 2026. Three-year returns are annualised.
These examples show that funds within the same broad risk category can deliver significantly different results. A growth fund does not necessarily outperform every moderate or conservative fund during a particular period.
2. Some PRS Funds Have Experienced Losses
Not all PRS funds generated positive returns during 2026.
For example, the iFAST report recorded the following year-to-date results:
| PRS Fund | 2026 YTD Return |
|---|---|
| AmPRS Asia Pacific REITs – Class D | −11.26% |
| Manulife Shariah PRS Golden Asia Fund – Class C | −8.58% |
| AmPRS Dynamic Sukuk Fund – Class D | −5.51% |
This is an important reminder that PRS is an investment arrangement, not a capital-guaranteed savings account. Even funds investing in bonds or sukuk can experience negative returns.
3. Does Strong Past Performance Mean a Fund Is Better?
Not necessarily.
A fund's historical return should be considered together with its investment objectives, asset allocation, volatility, fees, risk profile and suitability for the investor's retirement horizon.
For example, an investor approaching retirement may have different priorities from someone who has another 20 or 30 years before retirement.
Selecting a PRS fund based solely on its latest annual performance could expose investors to risks they have not fully considered.
4. Tax Relief and Investment Returns Are Two Different Benefits
Suppose an eligible taxpayer contributes RM3,000 to PRS and qualifies for the full deduction at a marginal tax rate of 19%.
The estimated income tax saving would be:
RM3,000 × 19% = RM570
However, the RM3,000 PRS contribution remains invested and is subject to market movements, applicable fees and withdrawal rules.
The RM570 represents an illustrative tax saving, not an investment return or a guaranteed cash rebate.
Therefore, the actual outcome depends on both the taxpayer's eligibility for tax relief and the investment performance of the selected PRS fund.
5. What Should Investors Consider Before Choosing a PRS Fund?
Investors should consider their retirement time horizon, risk tolerance, investment objectives, fund charges, historical volatility and the potential impact of market downturns.
It is also useful to review whether an existing PRS fund remains appropriate as retirement approaches or personal circumstances change.
The key message: PRS tax relief may make retirement contributions more attractive, but the fund selection and ongoing investment risks deserve equal attention.
Important Disclaimer
This article is provided for general educational and informational purposes only. It does not constitute personal financial, investment or tax advice, an offer, or a recommendation to buy, sell or switch any particular PRS fund.
The funds and performance figures are presented as historical examples for comparison and do not constitute an endorsement or ranking. Past performance is not indicative of future results. Investment values and income may rise or fall, and investors may receive less than their original investment.
Tax relief eligibility and actual savings depend on prevailing Malaysian tax rules and individual circumstances. Readers should verify the latest official requirements, review the relevant fund disclosure documents and seek appropriately qualified professional advice where necessary.
Performance source: iFAST PRS Comparison, Bloomberg Finance L.P. and iFAST compilations, 31 October 2026.
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