Hope of restoring confidence in the Thai stock market with THAIESG
The returns on the Thai stock market are ranked at the bottom of the world. This has led to measures to restore confidence in which the Ministry of Finance together with relevant agencies have issued a press release to restore confidence by changing the investment conditions in the THAIESG Tax Savings Fund to support investment in the stock market which is an investment. long term Including supporting the enhancement of transparency and good governance of listed companies.
Investing in tax saving funds There are many forms available today, including traditional funds, well-known LTFs, which have expired. And there is a new type of fund to replace it, namely the SSF fund, which has many conditions that do not meet the needs of investors, including the old THAIESG that is not popular. Because the holding period is long and the benefits are lower than LTF, this change is considered a big change to attract investment capital and build confidence in the Thai stock market.
The new THAIESG adjusts conditions in 3 matters:
1. Credit limit expansion not exceeding 30% of assessable income and can purchase up to a maximum of 300,000 baht, from not exceeding 100,000 baht previously
2. The holding period has been reduced to 5 years. from the date of purchase, from the original 8 years, in order to attract a younger group of people Independent career that can accept the risk of investing in securities. but needs higher liquidity
3.Expanding investment policy Promote the disclosure of information on sustainable operations of listed companies in a more comprehensive dimension than previously focusing on outstanding environmental businesses. (Environment) adds to the aspect of good governance (Governance) and promotes transparency. Provide more value-based information for decision making As a result, there will be approximately 200 more securities in Universe, from the current 121 securities.
Forecasting the effect on the stock market
From the results of the study it was found that Every 1 billion baht invested in long-term stock mutual funds (LTF) will affect the Thai stock market index (SET Index) by 25-27 points. It is expected that investment will not be less than 3 billion in 2567 and 6-7 billion in Next year
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THAIESG is a good savings option for young people, self-employed people, and people who have not fully invested in their retirement funds, such as RMF, due to increased deduction rights at 30% compared to LTF at 15%. People who pay taxes at the middle level (Annual income 7.5 - 2 million baht) which is a large proportion of the number of taxpayers. There are more options for saving money through tax-deductible funds.
Will investors respond or not?
Investors with a high tax base and looking for tax-saving options, investing in THAIESG will have more benefits than traditional funds. This is because the holding period is shorter than just 5 years and the credit limit is higher from the original THAIESG from 1 baht to 3 baht, and investors who pay middle-class taxes will benefit from using higher deductible rights from Previously, LTF received only 15% of the THAIESG income, which was increased to 30% of the income. Therefore, it is expected that investors will respond to this new THAIESG investment, but there is confidence in investing in the stock market in transparency. Good governance of listed companies And problems with the trading system that create advantages and disadvantages should be resolved together. To restore the confidence of investors who invest in the long term.
How to choose funds to get more than just tax savings
With a variety of investment options Investors should consider many factors before making investment decisions. Including investment policy Experience and performance in managing Thai stock funds Including expenses collected Choosing funds that perform well will make investing more beneficial than saving taxes. Therefore, you should consider investing in an asset management company that has a variety of policies to choose from and allows for the transfer of funds across asset management companies.
From the many advantages of the new THAIESG fund, it is expected that investors will respond to the investment. However, confidence in investing in the stock market in transparency Good governance of listed companies And problems with the trading system that create advantages and disadvantages should be resolved together. To restore the confidence of domestic and foreign investors in the long term.
