1. What is a provident fund and how does it work?
2. Why choose Bangkok Bank to manage our provident fund?
3. What happens to the provident fund if the company is bankrupt?
4. Do I have to pay income tax on my contributions to a provident fund?
5. Who is the provident fund committee?
6. How can I check my fund statement?
7. How much do I have to pay into the fund?
8. If I stop working, can I continue to pay my contribution directly to the fund?
9. When does provident fund membership terminate?
10. If I am a fund member and I die, where will my funds go?
11. How long will I or my family have to wait for a payment? 
12. Do all employees have to be provident fund members?
13. What is the difference between a provident fund and social security?
    

1. What is a private fund?
2. What is the difference between private funds and mutual funds?
3. What is a custodian?
4. How much do I need to invest?
5. How do I decide on the criteria for my investment portfolio?   
6. What are the fees?
7. Who makes the investment decisions? 
8. How can I check the performance of the fund?
9. Can I increase or withdraw from my private fund investment?
10. What are benefits of investing in a private fund?
11. Why choose Bangkok Bank to manage my private fund?

Provident Fund

1. What is a provident fund and how does it work?
   A provident fund is designed to protect employees in case of resignation, retirement, disability or death. The fund is composed of savings contributions taken from employees’ salaries as well as other contributions from employers, and the benefits the fund creates through its investments. Many companies offer a provident fund to their staff as part of a range of benefits to attract and retain staff.
   
   

   Once registered, the fund will be legally defined as a separate legal entity. When the provident fund starts, a portion of employees' salaries will be deducted and channeled into the fund. Employers can also contribute an amount which is equal to the employees' contributions or higher. The funds contributed is owned by all registered members. Since the provident fund is strictly regulated by the Securities and Exchange Commission (SEC), the fund manager has to invest all of the money in compliance with the law as defined in the Provident Fund Act.
   
   Employees can get the total amount of their contributions upon their resignation or retirement under the conditions fixed by law. In case of disability or death, employees will received the funds according to the policy.
   

2. Why choose Bangkok Bank to manage our provident fund?
   Bangkok Bank fund management team specializes in both fixed income and equity markets. We have state-of-the-art technology and nationwide branch network to support us. We also have a separate fund management function to manage funds and prevent a conflict of interest while maintaining high ethics. Our customers have access to our highly qualified fund managers who manage their investments professionally.
   
   
3. What happens to the provident fund if the company is bankrupt?
   The members still gain the benefits of the fund because it is not set up by the company. Provident funds are managed by a juristic entity that is separate from the company, employers and the asset management firm.
   
   
4. Do I have to pay income tax on my contributions to a provident fund?
   No, income credited to the fund is exempt from income tax.
   
   
5. Who is the provident fund committee?
   The provident fund committee is made up of elected representatives from both the employee and employer sides. The number of committee members is decided based on the principles of the fund regulations.
   
   
6. How can I check my fund statement?
   Each contributor will receive a provident fund statement to show them the account activities at least every six months. It will show the contribution amounts and earnings of the fund for the periods of January to June and then from January to December of every year.
   
   
7. How much do I have to pay into the fund?
   According to Thai law, employees are required to contribute
   2 – 15% of their relevant income. Generally, the contributions are taken from employees' monthly salary.
   
   
8. If I stop working, can I continue to pay my contribution directly to the fund?
   No, the payments must come from your salary together with the other contribution from your employer.
   
   
9. When does provident fund membership terminate?
   Provident fund membership ends when the fund is closed down e.g. the company is closed or merged with another company, the member dies, quits the fund, resigns from the job for whatever reason, retires or transfers to another fund.
   
   
10. If I am a fund member and I die, where will my funds go?
    You may nominate one or more person to receive the funds in the event of death. If no nomination has been made at the time of death, the asset management company will pay the funds to
    
    1) Children (two portions or three portions if you have more
        than three children)
    2) Spouse (one portion) 
    3) Parents (one portion)
    
    
11. How long will I or my family have to wait for a payment? 
    The asset management company will make the payment by cheque to members or families within 30 days after the fund membership ends.
    
    
12. Do all employees have to be provident fund members? No, employees can choose whether they want to be provident fund members or not. This depends on the regulations of each company.
    
    
13. What is the difference between a provident fund and social security?
    Provident funds are voluntarily set up by employers and employees to provide employees peace-of-mind during difficult times. On the other hand, social security payments are compulsory. Both the company and its employees as well as the government have to pay their contributions.  Employees can claim the total amount of their contributions under the conditions fixed by law.
    
    

1. What is a private fund?
   Bangkok Bank’s Private Fund is a service that focuses on the investment needs of an individual (Thai or foreign), group of between two and nine with same nationality or incorporated bodies.
   
   
2. What is the difference between private funds and mutual funds?
   A private fund is designed to fit in with your individual investment needs according to your financial goals. With a private fund, both Bangkok Bank and the investor(s) work together to come up with an investment strategy. The bank then manages the money in the fund according to the agreed on strategy. Mutual funds are open for pubic participation and the strategy cannot be altered to suit the needs of the investors. Mutual funds already have a built-in strategy and an investment policy so that potential investors can choose to participate.
   
   
3. What is a custodian?
   A custodian is an agent, bank, trust company, or other organization that holds and safeguards an individual's or investment company's assets. The custodian must be approved by the SEC. In addition, it must be separated from an asset management company to prevent a conflict of interest.
   
   
4. How much do I need to invest?
   A person wishing to set up private fund can be private individuals, groups of two to nine persons of same nationality or an incorporated body with an investment of over 10 million Baht.
   
   
5. How do I decide on the criteria for my investment portfolio?
   Each private fund is designed to meet individual investment objectives. It is highly flexible and it takes into account a client's risk-return profile, investment objectives and investment constraints, allowing for a unique investment policy.
   
   
6. What are the fees?
   An annual fee is based on the net asset value of the fund that varies according to each portfolio. We are available to discuss the details with you. Please contact us on (66) 0-2230-1922 or (66) 0-2626-3495.
   
   
7. Who makes the investment decisions?
   The fund management team approved by the SEC is responsible for managing the assets in the fund and for making the investment decisions.
   
   
8. How can I check the performance of the fund? 
   A monthly report on portfolio along with the updated net asset value will  be sent to you. You will also receive a fund performance report and a portfolio transaction report. 
   
   
9. Can I increase or withdraw from my private fund investment?
   Yes, you have the option of increasing or withdrawing funds from the investment but it depends on the agreement made between you and Bangkok Bank when the fund was set up.
   
   
10. What are benefits of investing in a private fund?
    
    
    • Investors may receive higher benefits from private fund investments when compared with savings account interest.
    • Professional fund managers make the investment decisions for you.
    • It is convenient and easy to manage.
    • The fund managers are regulated by the Securities and Exchange Commission (SEC) and fund management.
    • The asset management company acts as another third party to safeguard the funds.
      
      
11. Why choose Bangkok Bank to manage my private fund?
    
    
    • Bangkok Bank is a large and secure commercial bank with a good reputation.
    • We have a big financial database that enables us to analyze and scrutinize your investment efficiently.
    • We have an experienced and professional fund management team made up of  the following members:
      
      - Fund Manager who analyzes, sets the investment
        direction and makes investment decisions
      - Dealer who provides asset allocation according to
        fund manager's requirements
      - Investment Planner who provides customers with
        investment advice
       
      
    • With our sophisticated information technology and equipment, our private fund customers receive monthly
      investment reports.