Investors given green light to switch equity funds next month

Investors can start switching their long-term equity fund (LTF) units into the Thai ESG Extra Fund (ESGX) from May 13 to enjoy new tax benefits, while the Stock Exchange of Thailand (SET) will launch a new service on May 2 which will allow investors to view all their LTF holdings across asset management companies via the SET website.

- NUNTAWUN POLKUAMDEE

Pornanong Budsaratragoon, secretary-general of the Securities and Exchange Commission (SEC), said the regulator expects about 75% of the outstanding LTF capital to migrate to Thai ESGX.

There are currently 37 Thai ESGX funds proposed by 19 asset management companies under the SEC’s consideration.

Warotai Kosolpisitkul, international economic advisor at the Finance Ministry’s Fiscal Policy Office, said the gradual sell-off of LTF units in early 2025 adversely affected the Thai stock market. Consequently, new tax measures were proposed to stabilise the stock market and encourage sustainable investment, partly by granting tax deductions for new purchases of Thai ESGX units and transferring LTFs to Thai ESGX funds.