Tips for Investing and Managing Taxes to Meet Your Goals at Every Age What stage are you in? Let’s break it down!

STORIES & TIPS

Tips for Investing and Managing Taxes to Meet Your Goals at Every Age What stage are you in? Let’s break it down!

09-12-2024

Plan Your Finances with a Dual Approach: Tax Management and Retirement Planning

I once attended a lecture by a renowned finance professor who shared invaluable insights into investing and tax planning for salaried workers. The professor recounted a story that left a lasting impression on me about securing income in retirement. He explained that to avoid the risk of "growing old before growing wealthy," it's crucial to aim for a retirement income ratio of 10:90—where 10% of your income comes from "work" and 90% from "investments."
Now, consider the reality for many Thai retirees: as opportunities to earn income through active work decrease significantly, having a stable income from investments or a well-structured savings plan becomes essential. For salaried workers, achieving this balance requires consistent, long-term investment starting from their first paycheck through to retirement. Over a working career spanning more than 30 years, you need to focus on two key financial objectives: effective tax management and building a robust retirement fund.

First, Effective Tax Management

Invest according to the level of risk you can accept.
Diversify risks through asset allocation, creating a portfolio with various assets.
Select a fund with a policy that aligns with your investment goals, period, and return potential.
Key considerations:
- Review tax deduction rights to ensure your investments remain within allowable limits and comply with tax deduction conditions.
- Choose a fund with holding period requirements that match your investment goals.

Second, Building a Robust Retirement Fund

Invest according to the level of risk you can accept.
Diversify risks by creating a portfolio with various assets.
Select a fund with a policy that aligns with your investment goals, period, and return potential.
Key considerations:
- Assess the number of years left before retirement to select a tax-deductible fund that suits your timeline.
- Evaluate the target amount you aim to use after retirement to allocate investments proportionally and improve your chances of reaching your goal.

As the year-end approaches, remember that tax-saving funds like ThaiESG, SSF, and RMF are essential for both tax management and retirement planning.

Invest to Manage Taxes and Plan for Retirement Simultaneously with ThaiESG, SSF, and RMF Funds

Let’s start by briefly reviewing each type of tax-deductible fund, along with their purchase and holding conditions. The following summary table highlights the key differences between the three types of funds:

Summary Table: Conditions for 3 Tax-Deductible Funds

Thai ESG

SSF

RMF

Investment Policy

Focuses on investments in Thailand, primarily ESG stocks or ESG debt instruments.

Invest in a diverse range of assets, including bonds, debt instruments, Thai stocks, foreign stocks, real estate, infrastructure, and gold.

Invest in a diverse range of assets, including bonds, debt instruments, Thai stocks, foreign stocks, real estate, infrastructure, and gold.ำ

Deduction Amount

Up to 30% of income or a maximum of 300,000 baht, without consideration of other retirement group deductions.

Up to 30% of income or a maximum of 200,000 baht,

while considering limits for other retirement group tax deductions.*

Up to 30% of income or a maximum of 200,000 baht,

while considering limits for other retirement group tax deductions.*

Minimum Investment Amount

No minimum investment required, and annual investments are not mandatory.

No minimum investment required, but continuous annual investment is necessary. Exceptions include skipping investment for up to one year or any year with no income.

Holding Period

At least 5 years from the date of investment.

At least 10 years from the date of investment.

At least 5 years from the date of investment

and held until the age of 55.

Tax Deduction Timing

To claim a tax deduction for any year, the fund must be purchased within that year. For example, to claim the tax deduction for income in 2024, the fund must be purchased by the last business day of December 2024.Funds cannot be sold before the holding period ends. Early sale will result in a violation of tax deduction conditions, requiring the repayment of all exempted taxes (except in cases of disability or death).

Tax-Free Profits

Upon completing the holding period, profits from selling fund units are exempt from personal income tax.

*The tax deduction limit for the retirement group includes SSF, RMF, PVD, GPF, pension life insurance, and the Teacher Welfare Fund, with a combined maximum limit of 500,000 baht.
This year’s tax deduction criteria allow for a total maximum deduction of 800,000 baht from the investment group when combining the limits of ThaiESG, SSF, and RMF.

At SCB, we have a tip for investing and managing taxes to align with your objectives across 3 age groups. Which age group are you in? Let’s explore!

1. TRENDY: New Generation, Energetic Investors

As you start your career, financial planning is essential for building a stable foundation and achieving short-term goals, such as saving for further education or purchasing a car. This stage is also the perfect time to explore various investment options, including stocks, REITs, Infrastructure Funds, and mutual funds. With decades ahead to work and earn income, you have the advantage of time, allowing you to allocate your savings to higher-risk investments with the potential for higher returns.

Consider investing in RMF, SSF, or Thai ESG funds tailored to meet the needs of the starting-working generation—TRENDY investors like you.

Recommended SSFs:

SCBNDQ (SSF): SCB US Equity NDQ (Super Savings Fund)

Investment Focus: Invests exclusively in units of a single Feeder Fund, the Invesco NASDAQ 100 ETF (Master Fund), in USD currency. The Master Fund aims to closely match the performance of the NASDAQ-100 Index (before fees and expenses) by investing at least 90% of its assets in securities that are components of the NASDAQ-100 Index, listed on the NASDAQ Stock Exchange.
Top 5 Holdings: Apple, Microsoft, Nvidia, Broadcom, and Meta (Data as of September 30, 2024)
Risk Level: 6 (High Risk)

SCBLT1-SSF: SCB Dividend Stock 70/30 Long Term Equity Fund (Super Savings Fund)

Investment Focus: Invests primarily in equity instruments, including common stocks of listed companies, investment units of mutual funds, equity instruments tied to stocks of listed companies, ETFs that track the performance of individual stocks or stock indices, and index funds or derivatives referencing the returns of listed stocks or stock groups. On average, the fund maintains an allocation of 65%–70% of NAV annually in these instruments, with a focus on stocks that have policies or a track record of regular dividend payments.
Top 5 Holdings: CPALL, AOT, ADVANC, GULF, and DELTA (Data as of September 30, 2024)
Risk Level: 6 (High Risk)

Recommended RMFs:

SCBRM4: SCB Equity RMF

Investment Focus: Primarily invests in common stocks listed on the Stock Exchange of Thailand with strong fundamentals and high liquidity, maintaining an allocation of at least 80% of NAV annually. The remainder is allocated to securities from listed and unlisted companies, as well as other financial instruments, based on market conditions. The fund aims to deliver returns in line with the SET 50 Index.
Top 5 Holdings: AOT, CPALL, GULF, ADVANC, and DELTA (Data as of September 30, 2024)
Risk Level: 6 (High Risk)

SCBRMDIGI(A): SCB Global Digital RMF (Accumulation)

Investment Focus: Invests exclusively in the BNP Paribas Funds Disruptive Technology (Master Fund), Share Class I USD. The Master Fund invests at least 75% of its assets in global companies generating income from innovative technologies, such as artificial intelligence, cloud computing, and robotics. The remaining portion (up to 25%) may be invested in transferable securities, money market instruments, or cash, with no more than 15% allocated to debt instruments and up to 10% in UCITS or UCIs.
Top 5 Holdings: Microsoft, Amazon, Apple, Nvidia, and Alphabet (Data as of September 30, 2024)
Risk Level: 6 (High Risk)

SCBRMNDQ(A): SCB US Equity NDQ RMF (Accumulation)

Investment Focus: Invests in the Invesco NASDAQ 100 ETF (Master Fund), denominated in USD. The Master Fund aims to closely replicate the performance of the NASDAQ-100 Index (before fees and expenses) by investing at least 90% of its assets in securities that are components of the index. These include the largest 100 companies listed on the NASDAQ, excluding financial institutions.
Top 5 Holdings: Apple, Microsoft, Nvidia, Broadcom, and Meta (Data as of September 30, 2024)
Risk Level: 6 (High Risk)

Recommended Thai ESG Funds:

SCBTA (ThaiESG): SCB Thai Sustainable Equity Active Fund (ThaiESG)

Investment Focus: The fund invests primarily in shares of companies listed on the Stock Exchange of Thailand and/or the Market for Alternative Investment (MAI). It emphasizes companies that excel in Environment, Social, and Governance (ESG) practices and/or contribute to reducing the impact of climate change. These companies must have clear management plans and goals to align with Thailand's greenhouse gas emissions reduction targets. The fund employs an ESG Integration investment analysis process and maintains an allocation of at least 80% of NAV annually to such investments.
Top 5 Holdings: AOT, CPALL, ADVANC, SCB, and KBANK (Data as of September 30, 2024)
Risk Level: 6 (High Risk)

Data by SCB CIO (as of August 28, 2024)

Tax benefits are subject to compliance with the laws and announcements issued by the Revenue Department.
These mutual funds have specific characteristics and associated risks. Investors should understand the product, its return conditions, and associated risks before making an investment decision. It is essential to review the tax benefits detailed in the fund's prospectus.
As these funds do not fully hedge against exchange rate fluctuations, investors may experience gains or losses due to currency exchange movements or receive a refund lower than the original investment amount.
For further details, review the master funds and prospectuses available on SCB Asset Management Co., Ltd.’s website or the SCB EASY app, or contact the SCB Call Center at 02-777-7777 for inquiries.

2. SAVVY: Smart, Self-Establishing Investors

For individuals who have been working for some time and are in the process of establishing themselves, investment planning becomes a critical part of building a stable foundation for the future. At this stage, you may have gained work experience and are focused on expanding opportunities while creating greater stability in your life. Consider funds that offer flexibility, such as those without mandatory yearly purchases, and prioritize shorter holding periods to maintain liquidity for cash flow. However, if your financial situation allows, continuous investments in RMF funds can help you achieve long-term retirement goals alongside your current financial objectives.

Choose RMF, SSF, or Thai ESG funds designed to meet the needs of family-building and stability-focused individuals like you—SAVVY investors.

Recommended SSFs:

SCBLT1-SSF: SCB Dividend Stock 70/30 Long Term Equity Fund (Super Savings Fund)

Investment Focus: Primarily invests in equity instruments, including common stocks of listed companies, mutual funds, ETFs referencing the performance of individual stocks or stock groups, index funds, or derivatives tied to stock performance. On average, the fund allocates 65%–70% of NAV annually to these instruments, emphasizing stocks with policies or a history of regular dividend payments.
Top 5 Holdings: CPALL, AOT, ADVANC, GULF, and DELTA (Data as of September 30, 2024)
Risk Level: 6 (High Risk)

SCBS&P500-SSF: SCB US Equity Fund (Super Savings Fund)

Investment Focus: Invests in the iShares Core S&P 500 ETF (Master Fund), which seeks to replicate the performance of the S&P 500 Index by investing in its component stocks. The fund aims to deliver returns closely aligned with the index.
Top 5 Holdings: Apple, Microsoft, Nvidia, Amazon, and Meta (Data as of September 30, 2024)
Risk Level: 6 (High Risk)

Recommended RMFs:

SCBRMGHC: SCB Global Health Care RMF

Investment Focus: Invests in units of the Janus Henderson Global Life Sciences Fund (Master Fund), Class I acc, USD currency. The Master Fund primarily invests in equity instruments of companies globally involved in life sciences, e.g. research, development, production, and distribution of health-related products or services and self-care products, medicines, or pharmaceuticals, and companies with growth driven by products, technologies, patents, or marketing advantages in life sciences.
Top 5 Holdings: Eli Lilly, UnitedHealth, Novo Nordisk, AstraZeneca, and AbbVie (Data as of August 31, 2024)
Risk Level: 7 (High Risk)

SCBRM4: SCB Equity RMF

Investment Focus: Primarily invests in common stocks listed on the Stock Exchange of Thailand with strong fundamentals and high liquidity, maintaining an allocation of at least 80% of NAV annually. The remainder is allocated to securities of listed and unlisted companies, as well as other financial instruments, based on market conditions. The fund aims to provide returns aligned with the SET 50 Index.
Top 5 Holdings: AOT, CPALL, GULF, ADVANC, and DELTA (Data as of September 30, 2024)
Risk Level: 6 (High Risk)

SCBS&P500: SCB US Equity Fund (Dividend)

Investment Focus: Invests in the iShares Core S&P 500 ETF (Master Fund), which seeks to replicate the performance of the S&P 500 Index by investing in its component stocks. The fund aims to deliver returns closely aligned with the index.
Top 5 Holdings: Apple, Microsoft, Nvidia, Amazon, and Meta (Data as of September 30, 2024)
Risk Level: 6 (High Risk)

Recommended Thai ESG Funds:ำ

SCBTM (ThaiESG): SCB Thai Sustainable Mixed Fund (ThaiESG)

Investment Focus: The fund diversifies its investments between stocks of companies listed in Thailand that demonstrate outstanding performance in Environment, Social, and Governance (ESG) or have clear goals to reduce Thailand's greenhouse gas emissions and debt Instruments aimed at environmental conservation, sustainability, or the promotion of sustainability, with disclosures that meet SEC standards. The fund maintains an allocation of at least 80% of NAV annually in these assets.
Top 5 Holdings: CPALL, AOT, ADVANC, SCB, and KBANK (Data as of September 30, 2024)
Risk Level: 5 (Moderately High Risk)

Data by SCB CIO (as of August 28, 2024)

SCBRMGHC: Overall Rating 4 stars from Morningstar in the Thailand Fund Global Health Care category (as of July 31, 2024).
SCBRMS&P500: Overall Rating 5 stars from Morningstar in the Thailand Fund US Equity category (as of July 31, 2024).
SCBS&P500-SSF: Overall Rating 5 stars from Morningstar in the Thailand Fund US Equity category (as of July 31, 2024).
Tax benefits are subject to compliance with the laws and announcements issued by the Revenue Department.
Past performance does not guarantee future results.
These mutual funds have specific characteristics and associated risks. Investors should understand the product, its return conditions, and associated risks before making an investment decision. It is essential to review the tax benefits detailed in the fund's prospectus.
As these funds do not fully hedge against exchange rate fluctuations, investors may experience gains or losses due to currency exchange movements or receive a refund lower than the original investment amount.
For further details, review the master funds and prospectuses available on SCB Asset Management Co., Ltd.’s website or the SCB EASY app, or contact the SCB Call Center at 02-777-7777 for inquiries.

3. CLASSIC: Experienced Veteran Investors

As retirement approaches, investment planning should focus on financial stability and generating a reliable income stream to sustain your post-retirement lifestyle. With a lower risk tolerance and a priority on preserving principal, it is vital to select investments that align with these objectives. If you are within 10 years of retirement, consider investing in an RMF, which allows you to access the funds upon retirement. Alternatively, if you’re looking to set aside money for gradual withdrawals during retirement, SSF or Thai ESG funds are also suitable options.

Select RMF, SSF, or Thai ESG funds that cater to the needs of those preparing for retirement—CLASSIC investors.

Recommended SSFs:

SCBGOLDH-SSF: SCB Gold THB Hedged Open-End Fund (Super Savings Fund)

•Investment Focus: Aims to generate returns aligned with the movement of widely recognized gold bar prices, as disclosed by reputable organizations in Thailand or internationally. The fund achieves this indirectly by investing in the SPDR Gold Trust ETF.
•Portfolio Allocation: 92.82% invested in SPDR Gold Shares (as of September 30, 2024).
•Risk Level: 8 (Very High Risk)

SCBWORLD (SSF): SCB World Equity Index (Super Savings Fund)

Investment Focus: Invests in the iShares MSCI World ETF (Master Fund), denominated in USD. The Master Fund allocates at least 80% of its assets to stocks within the MSCI World Index, which represents companies in developed markets. It employs a representative sampling indexing strategy to align the fund's returns (before fees and expenses) with the performance of the index.
Top 5 Holdings: Apple, Microsoft, Nvidia, Amazon, and Meta (Data as of September 30, 2024)
Risk Level: 6 (High Risk)

SCBLT1-SSF: SCB Dividend Stock 70/30 Long Term Equity Fund (Super Savings Fund)

Investment Focus: Invests primarily in equity instruments, including common stocks of listed companies, investment units of mutual funds, equity instruments tied to stocks of listed companies, ETFs that track the performance of individual stocks or stock indices, index funds or derivatives referencing the returns of listed stocks or stock groups. On average, the fund maintains an allocation of 65%–70% of NAV annually in these instruments, with a focus on stocks that have policies or a track record of regular dividend payments.
Top 5 Holdings: CPALL, AOT, ADVANC, GULF, and DELTA (Data as of September 30, 2024)
Risk Level: 6 (High Risk)

Recommended RMFs:

SCBGOLDHRMF: SCB GOLD THB HEDGED RMF

Investment Focus: Aims to generate returns aligned with the movement of widely recognized gold bar prices, as disclosed by reputable organizations in Thailand or internationally. The fund achieves this indirectly by investing in the SPDR Gold Trust ETF.
Portfolio Allocation: 91.81% invested in SPDR Gold Shares (as of July 31, 2024).
Risk Level: 8 (Very High Risk)

SCBRM4: SCB Equity RMF

Investment Focus: Primarily invests in common stocks listed on the Stock Exchange of Thailand with strong fundamentals and high liquidity, maintaining an allocation of at least 80% of NAV annually. The remainder is allocated to securities from listed and unlisted companies, as well as other financial instruments, based on market conditions. The fund aims to deliver returns in line with the SET 50 Index.
Top 5 Holdings: AOT, CPALL, GULF, ADVANC, and DELTA (Data as of September 30, 2024)
Risk Level: 6 (High Risk)

SCBRMWORLD(A): SCB World Equity Index RMF (Accumulation)

Investment Focus: Invests in the iShares MSCI World ETF (Master Fund), denominated in USD. The Master Fund allocates at least 80% of its assets to stocks within the MSCI World Index, which represents companies in developed markets. It employs a representative sampling indexing strategy to align the fund's returns (before fees and expenses) with the performance of the index.
Top 5 Holdings: Apple, Microsoft, Nvidia, Amazon, and Meta (Data as of September 30, 2024)
Risk Level: 6 (High Risk)

Recommended Thai ESG Funds:

SCBTB (ThaiESGA): SCB Thai Sustainability Bond Fund (ThaiESG Accumulation)

•Investment Focus: Invests primarily in green bonds, sustainability bonds, or sustainability-linked bonds disclosed in compliance with SEC regulations. The fund maintains an average net exposure of at least 80% of NAV annually in these assets.
•Portfolio Allocation: Investments include government bonds, Bank of Thailand bonds, and state enterprise bonds aimed at promoting sustainability (Data as of September 30, 2024).
•Risk Level: 4 (Moderate to Low Risk)ำ

SCBTP (ThaiESG): SCB Thai Sustainable Equity Passive Fund (ThaiESG)

Investment Focus: Tracks the SET ESG Total Return Index, which consists of securities listed on the Stock Exchange of Thailand and/or the Market for Alternative Investment (MAI) that excel in environmental, social, and governance (ESG) management. The fund aims to deliver sustainable returns for unitholders and maintains an average net exposure of at least 80% of NAV annually in these stocks.
Top 5 Holdings: GULF, ADVANC, CPALL, AOT, and PTT (Data as of September 30, 2024)
Risk Level: 6 (High Risk)

Data by SCB CIO (as of August 28, 2024)

Tax benefits are subject to compliance with the laws and announcements issued by the Revenue Department.
These mutual funds have specific characteristics and associated risks. Investors should understand the product, its return conditions, and associated risks before making an investment decision. It is essential to review the tax benefits detailed in the fund's prospectus.
As these funds do not fully hedge against exchange rate fluctuations, investors may experience gains or losses due to currency exchange movements or receive a refund lower than the original investment amount.
For further details, review the master funds and prospectuses available on SCB Asset Management Co., Ltd.’s website or the SCB EASY app, or contact the SCB Call Center at 02-777-7777 for inquiries.

Want to Start Investing Today? Here's How!

If you're ready to invest, don't wait—start today by downloading the SCB Easy App and following these three simple steps:

Open a fund account via the SCB Easy App.
Link your fund account on the SCB Easy App.
Buy funds directly through the SCB Easy App.

Notes

Special Offer! Receive up to 1,600 baht in SCBSFF investment units* when you accumulate investments in participating RMF, SSF, or Thai ESG funds between September 2, 2024, and December 30, 2024.
Enjoy convenient and hassle-free investing via the SCB Easy App.
SCBRM1, SCBRM2, SCBFP-SSF, SCBSFFPLUS-SSF, and SCBTB (ThaiESGA) are not included in this promotion.
*Terms and conditions for the promotion and participating mutual funds are determined by SCB Asset Management Co., Ltd.
Tax benefits are subject to compliance with the laws and announcements issued by the Revenue Department.
These mutual funds have specific characteristics and associated risks. Investors should understand the product, its return conditions, and associated risks before making an investment decision. It is essential to review the tax benefits detailed in the fund's prospectus.
As these funds do not fully hedge against exchange rate fluctuations, investors may experience gains or losses due to currency exchange movements or receive a refund lower than the original investment amount.
For further details, review the master funds and prospectuses available on SCB Asset Management Co., Ltd.’s website or the SCB EASY app, or contact the SCB Call Center at 02-777-7777 for inquiries.

Learn more at:

SCBNDQ (SSF) https://www.scbam.com/th/fund/ssf/fund-information/scbndqssf

SCBLT1-SSF https://www.scbam.com/th/fund/ssf/fund-information/scblt1-ssf

SCBRM4 https://www.scbam.com/th/fund/rmf/fund-information/scbrm4

SCBRMDIGI(A) https://www.scbam.com/th/fund/rmf/fund-information/scbrmdigia

SCBRMNDQ(A) https://www.scbam.com/th/fund/rmf/fund-information/scbrmndqa

SCBTB(ThaiESGA) https://www.scbam.com/th/fund/thai-esg/fund-information/scbtbthaiesga

SCBTA(ThaiESG) https://www.scbam.com/th/fund/thai-esg/fund-information/scbtathaiesg

SCBTM(ThaiESG) https://www.scbam.com/fund/tax-thai-esg/fund-information/scbtmthaiesg

SCBTP(ThaiESG) https://www.scbam.com/th/fund/thai-esg/fund-information/scbtpthaiesg

SCBS&P500-SSF https://www.scbam.com/th/fund/ssf/fund-information/scbs-p500-ssf

SCBRMGHC https://www.scbam.com/th/fund/default/fund-information/scbrmghc