Investors seeking to purchase tax-deductible mutual funds within the final week of the 12 months ought to give attention to retirement mutual funds (RMFs) that put money into blockchain expertise and synthetic intelligence (AI) as a result of they generated the very best funding returns on this 12 months, says Morningstar Research (Thailand).

The agency mentioned these RMFs generated double-digit returns on funding for one-, three- and five-year intervals, with the very best returns occurring this 12 months.

Even because the funding outlook fluctuated significantly globally, RMFs are a confirmed selection for funding diversification, whereas the Thai bourse declined by nearly 20% this 12 months, mentioned Morningstar Thailand.

These RMFs can diversify funding into international fairness and overseas bonds, leading to substantial returns, mentioned the Thai unit of the US monetary providers agency.

RMFs that generated the very best returns this 12 months are Asia Plus Digital Blockchain RMF, Krungsri Global Technology Equity RMF and Tisco Next Generation Internet RMF, with returns of 59.5%, 40.3% and 38.3%, respectively, mentioned Morningstar.

“RMFs that generated high returns in 2023 invested in blockchain technology, innovation and AI, with the value of stocks in these funds moving in the same direction as the US stock market,” mentioned the analysis home.

Past returns are not any assure of future efficiency as numerous components have an effect on funding in property, mentioned Morningstar.

Asset allocation and funding diversification might help scale back danger and finally obtain focused returns, mentioned the agency.

To deduct taxes for RMF funding, buyers should proceed to put money into RMFs yearly, not pausing purchases for multiple 12 months in a row.

They should maintain the funding items for not less than 5 full years and can’t promote RMFs till age 55.

The buy of RMFs should not exceed 30% of taxable earnings or complete greater than 500,000 baht when mixed with Super Savings Funds and the contribution to provident funds, authorities pension funds, welfare funds, the National Savings Fund and pension insurance coverage.

As an RMF funding technique this 12 months, many funding administration corporations have really useful asset diversification.

For instance, Tisco Asset Management recommends investing in Thai inventory funds, international healthcare, international tech shares and Vietnamese fairness funds.