Bangkok: The investment management industry in Thailand has come together to introduce 42 new ThaiESG funds as part of a strategic move to expand the mutual fund unitholder base and promote sustainable financial health across the nation. This initiative, launched during the year-end tax season, aims for an investment target of at least 20 billion baht.
According to Thai News Agency, Ms. Chawinda Hanrattanakul, the President of the Association of Investment Management Companies (AIMC), announced that the AIMC and its 16 member investment companies are ready to support businesses aiming for national sustainability. The introduction of the 42 ThaiESG mutual funds seeks to provide employees, self-employed individuals, and freelancers with a viable long-term investment option, promising tax benefits up to 300,000 baht for investments held for five years or more. The initiative is also supported by the Thai government’s Ministry of Finance and Revenue Department, which have backed the ThaiESG mutual fund for susta
inability since its inception last year. Enhanced tax benefits, including a reduced holding period and increased deduction amount, make this a compelling investment option. The Thai stock market’s steady recovery and growth further bolster the expected 10% growth in investment management companies this year.
The industry’s collaborative effort to present these 42 ThaiESG funds from 16 asset management companies serves as a valuable alternative for the public to gain tax benefits. As of October 31, 2024, the number of funds and the total net asset value under management have nearly doubled compared to the end of 2023, with assets under management increasing from 6,400 million baht to 11,596 million baht, and the number of funds rising from 22 to 42. Over the past three years, the initiative has received consistent support from the Capital Market Development Fund (CMDF) and the Stock Exchange of Thailand (SET), which have played a crucial role in organizing the BIG Campaign ‘Promotion of Investment for Sustain
ability in Thailand through the ThaiESG Fund – Sustainable Investment with Tax Refund’. The campaign aims to raise awareness about ESG principles, long-term savings, and investment importance, encouraging Thai citizens to invest through the Thailand ESG Fund to meet the expected targets.