Which fund is better? SSF or RMF

Within a short period of time we will reach the end of this year. It is time for people to pay their tax. Most of them might be looking for a tax allowance or have a plan about a worthy tax payment. Mutual funds are a way for people to get tax allowance, which are SSF and RMF. Today we are going to compare which mutual fund can be used in tax allowance and which one is fit for you.

What is SSF?

SSF od Super Saving Fund is the fund that aims to support long term saving which has the minimum of investing time for 10 years. It is special because the Government allows the use of the money in this fund to file for tax allowance for individuals.

What is RMF?

RMF or Retirement Mutual Fund is the fund that supports the long term saving for use in retirement. The condition of this fund is that the minimum time of investment is 5 years and the fund can be sold back without violating the terms of the tax benefit when you are 55 years old.

The difference between SSF and RMF.

The purpose of these 2 funds is to save for a long term. However, RMF is long term saving for use in retirement. You need to do investment every year or can skip for 1 year and the investment time should be at least 5 years. You can sell back the fund when you are 55 years old and you will not be given any dividend. SSF is also a long term saving fund but the time limit is only 10 years. There is no condition in the investment. You can make an investment in this fund only when you need to do tax allowance. Also, there is a choice for you to choose whether you want the dividend or not.

Condition for Tax Allowance

SSF can do the tax allowance up to 30% of Assessable income, but do not exceed 200,000 baht.
RMF can do the tax allowance up to 30% of Assessable income, but do not exceed 500,000 baht when you are at least 55 years old or more.

Precautions when Disapplying with Tax Allowance

In case that you hold the fund not for 10 years old, the profits from the sale back shall be calculated for tax paying. Tax refunds will be applied retroactively every year, plus an interest fine of 1.5% per month of the amount of tax allowances. It will be retroactive from April of the previous year of the allowance application to the date of tax refund.

RMF

In case that the time of investment is not for 5 years, the profits from the sale back shall be calculated for tax paying. Tax refunds will be applied retroactively every year, plus an interest fine of 1.5% per month of the amount of tax allowances.

In case the time of investment is 5 years but you sell back before you are 55 years old, Tax refunds will be applied retroactively every year.