Holding period for an LTF (Long Term Equity Fund)

[bondjames007]

I am thinking about purchasing an LTF (Long Term Equity Fund).

 

Is there a maximum holding period for an LTF, can you redeem anytime without any penalties ?

 

 

 

 

 

[MRtommyR]

Hi. The LTF was discontinued at the end of 2019 and is replaced by the super savings fund (SSF). Existing LTFs can remain invested until they reach the end of the 7 year minimum term and beyond if you wish.

 

The SSF has a minimum investment term of 10 years. I don't think there is a maximum term. Redeeming before the minimum term incurs tax and other penalities.

 

If you are aged 45 or over consider retirement mutual funds (RMFs) instead as you may be able to access the money earlier.

[bondjames007]

49 minutes ago, MRtommyR said:

Hi. The LTF was discontinued at the end of 2019 and is replaced by the super savings fund (SSF). Existing LTFs can remain invested until they reach the end of the 7 year minimum term and beyond if you wish.

 

The SSF has a minimum investment term of 10 years. I don't think there is a maximum term. Redeeming before the minimum term incurs tax and other penalities.

 

If you are aged 45 or over consider retirement mutual funds (RMFs) instead as you may be able to access the money earlier.

Thanks for that, I will look into an RMF,  as I am 59 years old.

[Arkady]

9 hours ago, bondjames007 said:

Thanks for that, I will look into an RMF,  as I am 59 years old.

 

RMFs are a good tax deduction option, although the Thai stock market has not been a great performer of late. https://www.uobam.co.th/en/tax-benefit/rmf

That link explains the tax deduction.  You have to hold them for 5 years but the year you buy and the year you sell count as full years.  So you can buy in December and sell in January making it just over 3 full years. 

 

I have been buying these for many years.  You don't need to be working in Thailand to use RMFs for tax management.  When you retire you can keep on buying them and use them for deduction against any income, such as Thai dividends, rental income as well as the new tax on remittances of foreign source income. When you have set up an account with your chosen asset management company, you can make the investments online.

 

There are also SSFs but I haven't looked into those much as they didn't interest me because there are not stock investments.

 

A word of warning.  Thai asset management companies may refuse to open accounts for US citizens or green card holders to avoid FATCA reporting issues.

 

 

[john donson]

thai stocks are worse than interest from the thai banks...