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LTF & RMF

 

LTF (Long-term Equity Fund) is a type of mutual fund created with the aim to promote long term investments in securities of companies in the secondary markets such as the SET and MAI for the sustainability of the Thai equity markets as well as to instill long-term disciplinary saving to the minority investors.

 

RMF (Retirement Mutual Fund) is a type of mutual fund created to promote long-term financial discipline to investors in order to be prepared for retirement.

  

The Difference Between LTF And RMF

Objective

LTF RMF

Investment for a specific period of time

Long-term savings for retirement

Suitable for

  • Persons with taxable income
  • Persons with aims on investment such as the opportunity to receive returns on investment, tax deduction and to create disciplinary saving.
  • Investors who are able to accept the risks associated with the investment.

All groups of investors who wish to save for retirement and also persons who have no long-term retirement benefit plans such as Government Pension Fund (GPF), PVD. Such investors shall be able to accept the investment risks and conditions.

Investment Policy

Invest in equity not less than 65% of the NAV

A variety of investment policies depending on the policy of each fund.

Risk Level

Moderately high risk since it is an equity investment

Low, moderate to high risks depending on the policy of each fund.

Minimum Annual Investments

No minimum investment

At least 3% of the annual income or not less than Baht 5,000 per year, whichever is lower.

Maximum Annual Investments

No more than 15% of the annual income but shall not be more than Baht 500,000

Maximum investment of 15% of the annual income and when combined with provident fund or GPF and retirement insurance premium (maximum Baht 200,000) shall not be more than Baht 500,000 per year.

Investment Period

Investment units must be held for at least 7 calendar years before they can be redeemed.

The investment units shall be held for at least 5 years from the first purchase of investment units and the investment units can be redeemed when the investor reaches 55 years of age.

Continuity of Investment

Investment need not be invested on a yearly basis, each yearly investment is separate.

Investments shall be made continuously as per the conditions, counting on day-to-day basis from the first date of investment.

Dividends

Depending on the dividend policy of each fund

No dividend payments

Breaches of Investment Conditions

Redemption of investment units prior to 7 calendar years shall be regarded as a breach of investment conditions. However, in the case of death or disability of the investor the conditions shall be waived.

  • No investment for more than 1 year consecutively even though the investor still has income.
  • The minimum investment does not meet with the investment criteria.
  • Redemption of investment units before the investor reaches 55 years of age.
  • Redemption of investment units prior to 5 calendar years.
Any one of the above mentioned breaches is considered a breach of investment conditions except in the case of death or disability of the investor, the conditions shall be waived.

Requirements upon Breach of Investment Conditions

  1. The tax deduction in the year of investment shall be repaid together with a fine of 1.5% per month starting from April of the year the investor filed the tax return up to the month the tax deduction repayment is submitted. Therefore, the investor should immediately file a tax deduction repayment when a breach of investment conditions occurs, without having to wait until the annual tax payment period.
     
  2. Capital gain from the investment units shall be subject to tax. The capital gain shall be included with the annual income of the investor in the year of redemption. In actual practice the Management Company will initially deduct 3% of the capital gain when the investment units are redeemed.

1.  In the case the investments are less than 5 years and there is a breach of conditions:

  • Tax deductions in the last 5 years (calendar year) shall be repaid.
  • When the investment units are redeemed, capital gains from the investment units shall be subject to tax. The capital gain shall be included with the annual income of the investor in the year redemption. In actual practice the Management Company will initially deduct 3% of the capital gain when the investment units are redeemed and when the investor files the annual tax return, it shall be calculated again to see whether the tax deduction is sufficient or not.

2.   In the case of investments from 5 years and more and there is a breach of conditions: 

  • Tax deductions in the last 5 years (calendar year) shall be repaid.
The payment of tax as per No. 1 and No. 2 shall be paid within the month of March of the year following the year of breach of conditions and/or redemption of investment units otherwise it shall be subject to additional penalties.

 

LTF Investment Manual

RMF Investment Manual

Tax Calculation Program  

 

FINANCIAL PLANNING

Financial planning can help you find out how strong or weak your current financial status is. Starting with a sound financial planning will help you control your spending or saving as well as help you select the right investment or find additional income to be sufficient for your current and future actual spending.

 

RETIREMENT PLANNING

Do you know that from a recent survey, the average life expectancy of Thais has been steadily improving from 65 years of age 30 years ago to 74 at present and tends to continue to improve into the future due to various reasons such as technological advancement in medical and public health, better living conditions and better environment.

If we are to live longer while we plan to retire at the age of 55, this means that we will continue to have expenses, while our regular income has ceased, for 19 more years or longer. If an early retirement comes unexpectedly have you given it a thought … how much will you need …to be enough for the retirement years.?..


Retirement Saving Calculator