Advice on techniques for choosing and buying 3 tax-deductible funds: TESG – SSF – RMF

After last November 21, 66, the Cabinet passed a resolution approving the principles of the draft ministerial regulations. Under tax measures to promote investment for sustainability in Thailand Stipulates that the income of a natural person is paid for the purchase of investment units. “Thailand Mutual Fund for Sustainability” (Thailand ESG Fund or TESG) Can be used for tax deduction. It is considered a tax deduction fund. The newest type after SSF came out previously. Create excitement for the industry Especially for those whose income reaches the criteria for having to pay personal income tax.

Of course, as there are more types and numbers of funds to choose from, Another thing that buyers must consider is What type of funds should we invest in? Because not everyone is suitable for every department. Because there are different conditions To be able to hold long-term investments with confidence and maximum value This article will help recommend which type of pile you are most likely to be best suited for buying. Ready to recommend interesting funds in each category.

1. Review basic criteria before purchasing.

Many of you may still remember the Long-Term Stock Fund or LTF, including the Special Savings Fund or SSFX, which currently cannot be purchased in order to receive tax benefits. There are three types of funds with tax rights that are still effective today: Retirement Mutual Fund or RMF, Savings Mutual Fund or SSF and Thai Mutual Fund for Sustainability or TESG.

• Retirement Mutual Fund (RMF)
  • Maximum deductible is not more than 30% of income but not more than 500,000 baht.
  • Must buy at least every other year.
  • Can be freely resold when held for at least 5 years (considered by date of purchase) and when at least 55 years of age (considered by date of birth)
• Mutual funds for savings (SSF)
  • Maximum deduction is not more than 30% of income but not more than 200,000 baht.
  • No need to buy continuously every year.
  • Freely resaleable after holding for not less than 10 years (considering the date of purchase)
• Thai Mutual Fund for Sustainability (TESG)
  • Maximum deduction is not more than 30% of income but not more than 100,000 baht.
  • No need to buy continuously every year.
  • Granting the right to purchase from 2566 to 2575 (10 years in total)
  • Freely resaleable after holding for not less than 8 years (considering the date of purchase)

Joint consideration criteria

The amount for purchasing TESG is separate. No need to count with anyone while RMF and SSF purchased each year When counted with National Savings Fund provident fund Government Pension Fund Teacher Welfare Fund and pension insurance The deduction will not exceed 500,000 baht. Investors should carefully calculate the purchase amount from each type of fund in each tax year.

Criteria for reporting information to the Revenue Department

The Revenue Department has determined that investors who purchase RMF, SSF, and TESG will use tax deduction rights. Requests must be notified to all asset management companies (asset management companies) that purchase investment units. Within the last business day of the year of purchase in order for the asset management company to send the information directly to the Revenue Department. Instead of submitting documents by investors themselves The investor notifies only once and will use it forever. No need to notify every year However, if you do not notify your intention, you may not be able to use your tax deduction rights. This is because the information is not linked from the mutual fund company to the Revenue Department.

2. Guidelines for choosing a fund type

RMF SSF and TESG are similar in that they offer a wide range of fund types and risk levels. and the opportunity to receive returns The clear difference is Maximum amount that can be purchased each year Minimum holding period and the location of the assets in which the fund invests The decision to choose therefore depends on the specifics of each investor. Here, we will focus on having the right to resell as quickly as possible as an important factor. Because it is considered that the tax deduction is an important benefit that the buyer will receive from the year of purchase.

Therefore, the mandatory holding period is less. It will give investors more flexibility in managing their investments. It also considers the cases of RMF and SSF that offer investment opportunities around the world, while TESG will focus on investing in Thailand. Can be seen from the accompanying table.

• In the case of being younger than 45 years
  • Not more than the first 100,000 baht. In the case of investing in the country, we recommend buying the entire amount of TESG (hold for 8 years). But if you can invest all over the world, we recommend the whole amount of SSF (hold for 10 years).
  • Next 100,000 baht (cumulative amount 200,000 baht) SSF recommended
  • Next 100,000 baht (cumulative amount 300,000 baht, in case you still haven't bought SSF up to the full limit of 200,000 baht, we recommend buying SSF up to the full limit first. But if you've already bought SSF up to the full limit, you can buy RMF for the full amount.
  • For more than 300,000 baht, it is recommended to buy RMF fully until the total credit limit of 600,000 baht is reached (TESG 100,000 baht and SSF + RMF + other retirement investments totaling another 500,000 baht).
• In the case of age 45 years and up
  • Not more than the first 100,000 baht. If you are under 47 years old and focus on investing within the country, we recommend buying the entire amount of TESG. But if you are 47 years old or older or want to invest globally, we recommend RMF.
  • Next 400,000 baht (cumulative amount 500,000 baht) recommended RMF
  • Next 100,000 baht (cumulative amount 600,000 baht) In the case of age 47 years and above and focusing on investing within the country, TESG is recommended. But if younger than 47 years or want to invest worldwide, RMF is recommended. However, do not forget to include SSF and RMF in the fund. National Savings provident fund Government Pension Fund Teacher Welfare Fund and pension insurance

3. Solutions when conditions are violated

• Wrong conditions RMF
  • Suspend investment for more than 1 year (not purchasing continuously for at least every other year) must return tax retroactively for the amount of deductions already used. If you pay late, you must pay a penalty. Which is calculated from April of the year following the year in which the conditions are broken.
  • Sell ​​back before age 55 but invest for more than 5 years Must return back taxes for the amount of deductions already used. If you pay late, you must pay a penalty. This is calculated from April of the year following the year in which the sale violated the conditions. But profits from investment do not have to be included as assessable income.
  • Sell ​​back before age 55 and invest for less than 5 years. Must return tax for every year that was deducted. If you pay late, you must pay a penalty. This is calculated from April of the year following the year in which the sale violated the conditions. And if there is a profit from investment, it must be calculated as income and paid tax according to the investor's tax base.
  • Sell ​​back after reaching age 55 but invest less than 5 years Must return back taxes for the amount of deductions already used. If you pay late, you must pay a penalty. This is calculated from April of the year following the year in which the sale violated the conditions. And if there is a profit from investment, it must be calculated as income and paid tax according to the investor's tax base.
  • Buying more than your rights But it has not yet been used for tax deduction. Should sell back the surplus within the same year. And if there is a profit from investment (Counting only the portion in excess of rights) must be calculated as income and paid tax according to the investor's tax base.
  • Buying more than your rights and have already used the tax deduction rights You should hold the excess amount and wait to sell it at the normal maturity date. That is, sell it back at age 55 and invest continuously for more than 5 years, and if there is a profit from the investment (Counted only from the portion in excess of rights) must be calculated as income and paid tax according to the investor's tax base.
• Wrong conditions SSF and TESG
  • Sold before the deadline but have not yet applied for tax deduction rights. You should sell back the portion that exceeds your rights. And if there is a profit from investment, it must be calculated as income and paid tax according to the investor's tax base.
  • Sold before the deadline and already applied for tax deduction rights. Refund of taxes that were previously deducted and pay the fine And if there is a profit from investment, it must be calculated as income and paid tax according to the investor's tax base.
  • Buying more than your rights But it has not yet been used for tax deduction. Should sell back the surplus within the same year. And if there is a profit from investment (Counting only the portion in excess of rights) must be calculated as income and paid tax according to the investor's tax base.
  • Buying more than your rights and have already used the tax deduction rights You should hold the excess amount and wait to sell it when it is due. In order not to violate the terms of the early redemption and if there is a profit from the investment (Counted only from the portion in excess of rights) must be calculated as income and paid tax according to the investor's tax base.

4. Switching funds halfway Conditions that can be done but many people don't know

From the above information, it can be seen that RMF, SSF, and TESG are designed to be long-term investments. in exchange for tax rights which in principle Holding investments for the long term should bring quite a bit of benefit to investors. However, in an era where economic factors are more complex, The price trend of financial assets can be upward or downward for long periods of time. This may take several quarters or years. Holding investments in a mutual fund continuously until the holding criteria are reached. It may not always be the approach that creates the most benefit.

However, one feature that is extremely important for investing in RMF, SSF, and TESG is that even if you have to hold the investment for a long time, But along the way, you will not be forced to hold the same fund forever from the first day of purchase. In other words, it is

A type of mutual fund that must be held for the long term but does not have to be held for the long term. In practice Investors can freely switch among the three fund types within the same fund type. Moreover, it is not limited to having to switch within the same mutual fund company and there is no need to switch to stay in the fund at the same risk level forever.

For example, if you start investing in RMF technology stocks of Kiatnakin Phatra Asset Management Co., Ltd. Later, it was considered that I should switch to holding RMF, debt instruments of SCB Asset Management Company Limited. I was able to do so freely. Not violating tax conditions But cannot switch over to SSF debt instruments, and if later it is seen that it should be changed to hold RMF, Thai stocks of Talis Asset Management, you can do so. And if you want to go back and hold RMF technology stocks of Kiatnakin Phatra Asset Management Company again, you can do that as well. As for SSF and TESG, you can follow this mechanism in exactly the same way.

However, in practice, it is more difficult to switch RMF, SSF, or TESG across mutual funds. Both in terms of document burden and the time it takes to process which as an investor I accept that it may not be very convenient. While switching within the same asset management company (but still within the same RMF, SSF or TESG fund type) can be easily done by yourself via online channels. It is almost no different from sending orders to switch normal funds that investors are already familiar with. As an investor myself

Therefore, it is recommended to first consider switching within the same asset management company. Therefore, starting to invest in an asset management company that has a greater number of RMF, SSF, and TESG fund options may increase your chances of considering switching within an asset management company. Province is more diverse.

But the important point Perhaps more important is understanding that RMF, SSF, and TESG can switch midway through. is to know when that should buy/sell/switch funds of each type (such as commodities, Thai stocks, foreign stocks, debt instruments), which are on the Facebook fan pages of both Treasurist and Thailand Investment Forum, which are under the supervision of the author. This information has been presented clearly and is continually updated on a weekly basis. You can follow at facebook.com/treasurist and facebook.com/thinvestforum

5. Recommend interesting funds

During this time, the author recommends funds with a medium risk level or higher. To open up the opportunity to receive better returns in the long term according to the conditions of investing in tax deductible funds. Recommended funds are selected using Treasurist's AI fund recommendation system (treasurist.com) The numbers shown are information as of 29 November 2566.

• Retirement Mutual Fund (RMF)

Debt funds RMF Introducing KKP open fund Income for Retirement, General Type (KKP INRMF) of Kiatnakin Phatra Asset Management Co., Ltd. Focus on investing in deposits and/or debt instruments of private companies with good fundamentals, high growth potential and good financial stability. The average bond maturity is 2 years, 2 months, 11 days. This fund has returned 2.15% over the last 1 year and an average of 2.09% per annum over the last 3 years.

Equity funds RMF Introducing the KKP Global New Perspective Retirement Unhedged Fund (KKP GNP RMF-UH) of Kiatnakin Phatra Asset Management Company Limited. Focus on investing in the main fund, Capital Group New Perspective Fund, which invests in common stocks of companies around the world that will benefit from future changes in world trade and international economics. This fund returned 10.01% over the last 1 year and averaged 5.77% per year over the last 3 years.

Real estate funds RMF Introducing KTAM World Property Open Fund for a living (KT-PROPERTY-RMF) of Krung Thai Asset Management Company Limited Focuses on investing in the main fund, Global Property Equities Fund, which diversifies investments in the real estate business. Including Real Estate Investment Trusts (REIT), this fund has returned an outstanding 9.76% in the last 1 month and averaged -5.02% per year over the last 3 years.

• Mutual funds for savings (SSF)

Debt funds SSF Introducing KKP open fund Bond Plus Savings type (KKP PLUS-SSF) of Kiatnakin Phatra Asset Management Co., Ltd. Focus on investing in government bond funds. and private companies by private debt instruments as of the date of investment must have a credit rating of BBB+ or higher. This fund has historical returns of 1.07% in the last 6 months and 1.78% in the last 1 year.

Equity funds SSF Introducing Thanachart East Spring Gloval Technology for Savings Fund (T-ES-GTech-SSF) of East Spring Asset Management Company Limited. Focus on investing in the main fund, Polar Capital Funds PLC-Global Technology Fund, which focuses on investing in common stocks of companies in technology businesses around the world. that will benefit from future changes in world trade and international economics This fund has returned 12.90% in the last 1 month and 25.63% in the last 1 year.

Real estate funds SSF Introducing KTAM World Property Open Fund Type for saving (KT-PROPERTY-SSF) of Krung Thai Asset Management Company Limited Focuses on investing in the main fund, Global Property Equities Fund, which diversifies investments in the real estate business. Including Real Estate Investment Trusts (REIT), this fund has provided outstanding returns of 9.96% in the last 1 month and – 8.58% in the last 1 year.

• Thai Mutual Fund for Sustainability (TESG)

The TESG fund has not yet been officially launched. Because each mutual fund company is still in the process of applying for approval with the SEC Office (information dated 29 Nov. 66), therefore it will only be considered from fund policy information that has begun to be revealed. The interesting group is

          Mixed funds TESG Introducing SCB Open Fund Thai mixed with sustainability Thai type for sustainability accumulated value (SCBTM (ThaiESGA)) of SCB Asset Management Co., Ltd. Focus on investing with a flexible mix of debt instruments. and equity securities of companies with outstanding ESG issues

          Equity funds TESG Introducing the Krungsri Enhanced Thai Open Fund Set for Sustainability Accumulated value type (KFTHAIESGA) of Krungsri Asset Management Co., Ltd. Focuses on investing in companies with outstanding ESG issues based on the SETESG index.

It can be seen that even though it is a fund that aims to reduce taxes But when the holding period must be determined Considering the trend of generating returns from the fund's policy Including the timing of fund adjustments along the way. It will allow us to receive the best returns during the holding period.