Thai gov. to tax (remitted) income from abroad for tax residents starting 2024 - Part II

[universe2000]

I would like to buy a Long Term Equity Fund (LTF) to benefit from the tax deduction. Most have lost at least 20% in the last year.

Does anyone know one that was positive for the last year?

Thanks

[chiangmaibruce]

Nope I don't know of any. Back in Australia there are a few web sites you can go to and freely access performance tables for dozens of available funds. Here in Thailand the only source I have come across is this one which is by subscription only:

http://www.lipperweb.com

This company does occassionally issue media releases that get picked up by the bankok post for example. They did one on the performance of RMF/LTF a few months ago in fact, noting that "only 2 out of 53 LTF's posted positive returns in June 2008" ww.bangkokpost.com/040808_Business/04Aug2008_biz002.php

I think we can safely say the situation has only worsened since then!

If anyone reading this knows of another free source of Thai fund performance then i would love to hear about it. Your only other choice is to dig out a list of Thai fund managers (of which there are many) and then visit their web sites one by one to access their performance tables.

[universe2000]

I checked a few banks online and they have some performance reports for their LTF. All are very negative for the year (up to 50%)

The alternative is an RMF (Retirement Mutual Fund), which have safe government bond type investments, returning about the bank rate or slightly higher. The RMF has to be held until I am 55 years old, vs. the LTF which can be held about 3 years (Invest in Dec 2008, sell in Jan 2012).

So I am not sure if I should gamble that the market will be higher in 3 years. The next year will probably be rough. The SET can still drop to the 200 to 300 range.

[universe2000]

Thanks for the link. I just checked One Asset Management and that is what I was looking for. They hedge against the market so during downturns they are still positive. There is an article that came out about a week ago on this company.

A three year investment would reap about 7.7% from the tax benefit. Add with the return on the LTF, that would put it over 10%. Not bad in todays market.

Now I am looking to see what would happen if they went out of business for some reason. I don't think the government will help any. I was checking to see if I buy it through an agent like Ayudhya, Kim Eng, Seamico, or SCB Securities is there any protection.

Any comments will help.

Thanks.

[allan400]

I checked the web site of "One Asset Management". There I see only normal LTF, which invest in Thai stocks. No hedging, as far as I can see. I would also not think that this would give tax benefit, to invest against the markets.

For LTF, all of the banks have quite semilar results, because their investment oppotunities are strictly limited to the Thai stocks. Usually the funds feep almost same percentage of each stock... In my opinion, we should buy from the bank, which give the best customer service, and have a solid background.

And past results do not show much about the future. Actually if the past 1 year result is high, then I would expect the next years result to be below average, as the stocks in the fund did already rise more than average...

[aurelius]

The tax deduction available for LTF (and also RMF) has increased to 700,000bt each (or max of 15% of income) - a portion of the 700k must be purchased between Oct 31 and end Dec to qualify.

[Briggsy]

I would like to buy a Long Term Equity Fund (LTF) to benefit from the tax deduction. Most have lost at least 20% in the last year.

Does anyone know one that was positive for the last year?

Thanks

Instead of looking for a fund that increased in value last year, it might be better to seek a sector which is undervalued and has crashed heavily in the last 6 months and then look for the most professionally managed fund within the sector.

Are you happy investing in the domestic market for long-term growth? Investing overseas may not give a tax benefit but may involve less risk due to stronger regulation and higher growth over the long term.

[mommysboy]

I would like to buy a Long Term Equity Fund (LTF) to benefit from the tax deduction. Most have lost at least 20% in the last year.

Does anyone know one that was positive for the last year?

Thanks

Over the past 30 years I have been involved with 3 equity funds. All have failed to deliver and these were managed funds with good companies. They are a rip off IMHO.

However I've done quite well out of high interest earning savings accounts and bonds.

[flying]

I do not usually invest in funds, stocks or anything I dont have physically & it is not a equity fund but....... I did put a small amount in here maybe 5years ago.

It was because I did project management for a company & they insisted on putting some away for me tax free so how could I refuse. Anyway I figured it was free & I had won already so I put it in something ultra safe with small steady growth.

It has not disappointed in that respect.

You wouldn't get rich with it thats for sure. But like I said steady even now doing fine

http://quicktake.morningstar.com/FundNet/S...mp;Symbol=MFGSX

Edited December 26, 2008 by flying

[Naam]

I do not usually invest in funds, stocks or anything I dont have physically & it is not a equity fund but....... I did put a small amount in here maybe 5years ago.

It was because I did project management for a company & they insisted on putting some away for me tax free so how could I refuse. Anyway I figured it was free & I had won already so I put it in something ultra safe with small steady growth.

It has not disappointed in that respect.

You wouldn't get rich with it thats for sure. But like I said steady even now doing fine

http://quicktake.morningstar.com/FundNet/S...mp;Symbol=MFGSX

[flying]

Ok wise guy I just meant in the context of it has not been a loss ever since I held it In fact that chart is darn close to my actual investment there. Not much just a little gift from the company when I changed them over for the Y2k deal.

But I have wanted to pull it & buy gold

PS: the fund is the red line ya know

Edited December 26, 2008 by flying

[Naam]

the fund is the red line ya know

62% linear yield in TEN years makes you eligible for Planet Klingon's award "Honourable and Brave Alien Warrior"

[flying]

the fund is the red line ya know

62% linear yield in TEN years makes you eligible for Planet Klingon's award "Honourable and Brave Alien Warrior"

Yes it is peanuts for sure. But a peanut or two would be a 7 course meal these days for many

“I am more concerned with the return of my money than the return on my money.”– Mark Twain

Edited December 27, 2008 by flying

[Naam]

“I am more concerned with the return of my money than the return on my money.”– Mark Twain

ol' Mark lived in a different era. as far as i am concerned i would prefer that my invested money is never returned as it would save me the hassle to break my head again and again how to invest it. my wish is of course based on the assumption receiving adequate yields above inflation.

[flying]

"I am more concerned with the return of my money than the return on my money."– Mark Twain

ol' Mark lived in a different era. as far as i am concerned i would prefer that my invested money is never returned as it would save me the hassle to break my head again and again how to invest it. my wish is of course based on the assumption receiving adequate yields above inflation.

Yes that was tongue in cheek

When I was younger I did bust my head a bit when I had funds looking for ways to make it grow. I was in the Nasdaq during the 5000 days before the bust. Did ok some days & terrible on others.

Then I worked for that company I said gave me that little fund as a gift & saw just how badly companies cooked books. I decided I never wanted to invest in anyone except ,myself from now on & went back to real estate & building.

Alas now I wish I had known somebody perhaps like you who could have helped me be better set for the years ahead through investing in things like bonds. I am still looking & wondering now. I still have 15 years or so if all goes well so I better get cracking

[universe2000]

This is a late response for Allen400.

One Asset Management does have an LTF. It is called the '1am SmartLTF'.

They hedge against the market so the return should be better during market downtrends (like 2008). The return for 2008 was around 5% whereas the market was down somewhere around 30 or 40%. If the market increases in 2009, expect the fund to underperform the market (due to the hedging).

The benefit of the fund it the tax deduction. Without the tax deduction, it is better to choose other hedge funds that have lower management fees.