Thai ESG fund rockets to top spot with impressive returns

One Equity Thailand ESG Fund (ONE-THAIESG) is stealing the spotlight in the Thai ESG fund scene, boasting a whopping 8.53% return this year, as proudly announced by One Asset Management (ONEAM). What’s behind this stellar performance? A one-two punch of a policy rate cut by the US Federal Reserve and Thailand’s very own economic comeback.

TESG funds are the latest buzzword, designed as long-term, open-ended savings mutual funds zeroing in on sustainable investments from public and private players. The Finance Ministry is rolling out tax perks to lure green-minded investors.

Punters investing in TESG funds can trim up to 30% off their taxable income, up to the tune of 300,000 baht, as long as they stay invested for at least eight years. The ball got rolling on December 8 with a fleet of 22 funds from 16 asset giants, ballooning to over 30 by last year’s end. ONE-THAIESG joined the party the previous year.

ONEAM’s chief, Pote Harinasuta, is buzzing over ONE-THAIESG’s top-notch returns, hailing tax-deductible funds as the go-to year-end investment choice.

As we inch towards December’s finish line, ONEAM’s dangling a juicy deal to spruce up your investment haul beyond just snapping up tax deductions. Loyal ONE-THAIESG patrons will bag units worth 20 baht of ONEAM’s 1 A.M. Daily Fund Class RA (1AM-DAILY RA) for every 10,000 baht ploughed in, capping at 600 baht.

The deal’s up for grabs starting today until 30 December, with a minimum flutter of 2,000 baht for newbie investors. Plus, they’ve slashed the management fee for good measure.

Pote can’t stop crowing about ONE-THAIESG’s stellar returns in its competitive fund category.

The Thai stock market is gearing up for good times, with predicted EPS boosts in big-hitter sectors like communication, real estate, food, banking, and energy. The Stock Exchange of Thailand’s (SET) net profit is on the up and up year-on-year. ONEAM is forecasting a fourth consecutive net profit rise, meaning the Thai bourse might have seen its darkest days this year.

Pote sounds a note of caution on short-lived profit-taking but sees it as a golden chance to scoop up solid dividend and tax-deductible stock funds as the SET index wobbles.

The brokerage’s now-eye-catching SET index target for this year is 1,470 points, shooting for 1,640 by 2025, backed by an EPS surge of 12.4%. Heads up! This year marks the curtain call for snagging super savings funds (SSF), a nifty tax-deductible angle.

ONEAM’s waving its One Ultra Income Plus Fund (ONE-ULTRAPLUS) flag for those gunning for tax cuts. This fund dished out a 9% return since day one. Holding 4,500 units or more makes you eligible for life and health insurance goodies, courtesy of Muang Thai Life Assurance Plc’s policy terms, Bangkok Post reported.

Investors dipping their toes in ONE-ULTRAPLUS-ASSF, rocking non-dividend savings units, aren’t left out of the sales promo fun either. These folks score 1AM-DAILY RA fund units worth 20 baht for every 10,000 baht parked, maxing out at 400 baht. SSF savers can chop up to 30% off their taxable take-home, capped at 200,000 baht.