It’s almost here for the last curve for tax breaks through SSF and RMF mutual funds this year. SSF and RMF investment tips for tax breaks To help make this investment decision…
SSF and RMF investment tips for tax breaks
During the end of the year like this, it’s going to be the last curve like this. It’s time to consider investing in SSF and RMF. Today we have 5 tips for investing in SSF and RMF for your decision making. Deposit
1. Look at the long-term investment picture as the main
SSF and RMF mutual funds are long-term investments, i.e. SSF funds must be held for at least 10 years from the date of purchase, while RMFs must be invested continuously for 5 years and up to the age of 55. The decision to invest in SSF and RMF should primarily take into account the long-term returns and future investment outlook.
An example that can clearly see the picture is the short-term picture since the beginning of the year, funds that invest in foreign growth stocks such as technology. There are volatility and some periods have lower returns compared to the old economy group such as the financial group, but if you want to invest in the long term to use the tax deduction right Of course, high-growth segments like tech also have very good growth potential compared to other stocks.
2. Diversify investment risks
Back in the past, we could still invest in LTF mutual funds, which had a limitation that every fund had a policy to invest in Thai stocks at least 65%, resulting in not much diversification. But at present, the replacement SSF fund has diversified investment policies. across multiple assets and regions
Therefore, we can choose to invest in spreading the risk fully. Like an RMF fund that requires an investment policy to invest in any asset, this means that We are also able to fully diversify the risk. Especially at present, foreign investment funds, both SSF and RMF, have quite a variety of options. Considering investing in addition to investing in Thai stocks alone is also an option that should be diversified.
3. Consider the past returns from the same fund with the same investment policy
Considering the historical return of the fund for making investment decisions, for SSF funds that have just been established in the past 2020, each fund may not have a retrospective return to be considered. But in fact, the SSF funds of each asset management company are often issued SSF funds based on the existing general funds or classify (investment unit types) of the fund into class SSF, so we can see the historical return from The original general fund was already in the decision making.
In addition, SSF funds that have an overseas investment policy can also use an overseas master fund or master fund to consider the past returns in order to make investment decisions. But in the end, it must be remembered that past returns are not a guarantee of future returns.
4. When choosing to invest between SSF and RMF, it may be necessary to take into account the length of time that funds can be sold.
Of course, if anyone wants to get tax-deductible with full rights, they can invest in both SSF and RMF, but when combining the investments of both funds with other tax-deductible investments in retirement such as provident funds living pension insurance or government pension funds that must not exceed 500,000 baht, which may be considered for investment in just one The factor that should be considered is the age of the fund redemption at maturity, for example, if a person is 50 years old and close to retirement, investing in SSF must wait another 10 years before selling the fund. This means that we must be 60 years old, whereas investing in RMF takes a shorter holding period of 5 years and only reaches 55 years.
5. Plan DCA investments for the next year.
Planning for the next year’s investments early is essential. By investing in a monthly average or DCA (dollar-cost-averaging) in both the SSF and RMF funds is another way to reduce the price volatility that occurs with the fund. It also creates a discipline to invest regularly to occur as well.
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Source: Prachachat Business
