Funds that invest in US technology stocks and India stocks, both managed by BBL Asset Management (BBLAM), topped the list of retirement mutual funds (RMF) with high returns over the past three years, according to data compiled by Finansia Securities.
Bualuang Global Innovation & Technology RMF (B-INNOTECHRMF) provided the highest return at 15.3%, followed by Bualuang India Mid Cap RMF (B-INDIAMRMF) at 13.5%. Both are tax-deductible funds with a long-term outlook recommended for investors looking for tax savings, said Finansia.
Finansia Wealth, a unit of Finansia Securities, listed the top 10 RMFs over the past three years in terms of highest returns.
B-INNOTECHRMF invests in the master Fidelity Funds-Global Technology Fund, which focuses on US stocks, but also aggressively invests in other technology stocks globally.
B-INDIAMRMF invests in the master Kotak Fund-India Midcap Fund with a focus on mid-sized stocks established or conducting business in India.
Ranked third was KKP Global New Perspective RMF-Unhedged (KKP GNP RMF-UH), issued by Kiatnakin Phatra Asset Management, with a yield of 11.8%. The master is Capital Group New Perspective Fund, which invests in stocks that contributed to global economic and trade dynamics.
Fourth was Thanachart Gold Bullion RMF-Currency Unhedged (TGOLDRMF-UH) of Eastspring Asset Management (Thailand). With a return of 10.8%, the fund directly invests in standardised gold bars without hedging against exchange rate risk.
Others on the list comprise Bualuang Gold RMF (BGOLDRMF), Tisco Mid/Small Cap Equity RMF (Class A) (TMSRMF-A), SCB US Equity RMF (SCBRMS&P500), Asset Plus Equity RMF Fund (ASP-ERF), Krungsri Global Healthcare Equity RMF (KFHCARERMF) and Tisco Global Healthcare RMF (TGHRMF-A). They provided returns of 10.8%, 10.1%, 9.47% and 9.07%, respectively, while KFHCARERMF and TGHRMF-A both returned 9.06%, said Finansia Wealth.
"However, past performance is not a guarantee of future returns. Investors should carefully study investment information before making an investment decision," said the brokerage.
Investing in RMFs for tax deduction is suitable for long-term investment for retirement. RMFs require investors to buy every year and hold investment units for at least five years, until age 55, which is the earliest age holders can sell RMF units.
RMF purchases offer tax deduction for up to 30% of assessable income that is subject to taxation, with a maximum of 500,000 baht, and the total tax savings cannot exceed 500,000 baht when combined with other savings for retirement.
Starting in 2022, investors must request tax deduction privileges with every asset management firm they use for RMF purchases.
