Public Bank vs. Public Mutual: A 5-Year DCA Test

Public Bank is arguably the best-run bank in Malaysia.

To show its track record, the bank publishes a long-term return chart in its annual report every year. The numbers show how it has grown over time:

• 2005 Report: A 3-year investment (2003–2005) returned 48% per year including dividends.
• 2025 Report: A 5-year investment (2020–2025) returned 5.9% per year including dividends.
• Since 1967: An original 1967 investor who held on and joined every rights issue turned RM235,612 into RM3.4 million in shares plus RM2.3 million in dividends—an 18.2% annual return over 58 years.

This level of consistency is why the late Tan Sri Teh Hong Piow was so widely respected.

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The Big Question

Public Mutual agents always preach Dollar-Cost Averaging (DCA): buy the same fund every month, and time will grow your money.

That made me curious: If you DCA into Public Bank stock and a Public Mutual fund at the same time, which one wins after 5 years?

It isn’t a completely fair comparison:

1. Size Matters: Public Bank is worth ~RM100 billion. Public Mutual’s largest fund (Public Ittikal) is only around RM5 billion. Bigger companies usually grow slower.
2. Different Assets: Public Bank is a stable local bank paying steady dividends. A regional fund invests in fast-growing tech companies across Asia.

Still, Public Bank’s 5.9% 5-year return beats a lot of unit trust funds after you subtract their fees.

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The 5-Year Experiment

To find out which asset actually performs better, I am running an experiment DCA into 2 assets:

• Asset A: Public Bank shares (PBBANK)
• Asset B: Public Islamic Asia Tactical Allocation Fund (PIATAF) (5-year annualized return: 16.28%)

I will measure pure net value—meaning all brokerage fees, bank costs, and fund charges are subtracted.

• Start Date: July 23, 2026
• First Trade: RM1,034 in Public Bank vs. RM1,000 in PIATAF
• Updates: Posted monthly

(If PIATAF ever closes to new investors, I’ll switch the fund leg to Public Mutual’s next top performer.)

Let’s see if a managed regional fund can beat a solid local bank over the next 5 years.