Thai ESG Mutual Funds Witness a 400% Surge in Assets, Reaching 32 Billion Baht

Thai ESG mutual funds saw a significant increase in interest from investors in 2024, with net assets under management for the category rising by almost 400% to 32 billion baht.

• Thai ESG mutual funds saw a substantial 400% increase in net assets under management in 2024, driven by more attractive investment conditions and tax benefits.
• Bond funds were the most popular type of Thai ESG funds, with significantly higher returns compared to other types of funds.
• Investors interested in Thai ESG funds should carefully study the information and investment conditions to ensure alignment with their financial goals and risk tolerance.

Thai ESG mutual funds saw a substantial 400% increase in net assets under management in 2024, driven by more attractive investment conditions and tax benefits. This surge highlights growing investor confidence in sustainable financial products, as well as heightened awareness of environmental, social, and governance criteria. Analysts attribute this growth to supportive government policies, including incentives for green investments, and a broader shift towards ethical investing among both institutional and retail investors. Additionally, the rise in corporate transparency and reporting on ESG metrics has further bolstered trust and participation in these funds, setting the stage for continued expansion in the coming years.

This growth was driven by changes in investment conditions, making the funds more attractive. Bond funds were the most popular, accounting for 51% of the total value, with an average return of 4.59%. Equity funds, while totaling 35% of the total value, had a lower average return of 0.85%. Kasikorn Asset Management (K-Asset) led the market with a net asset value of 8.2 billion baht.