# Thai ESG X Fund Initiative Set to Boost Investment Confidence

- Link: https://www.thailand-business-news.com/markets/206248-thai-esg-x-fund-initiative-set-to-boost-investment-confidence
- Published: 2025-04-02T02:09:00+07:00
- Author: Abhishek Prakash

**Chavinda Hanratanakool announced the Thai ESG X Fund’s launch, which will attract
significant LTF capital, boosting investment and market confidence. KTAM’s AUM aim
is THB 1 trillion by 2025.**

Chavinda Hanratanakool emphasized that the Thai ESG X Fund aligns with sustainable
investment principles, appealing to both institutional and retail investors. This
initiative is expected to drive long-term financial growth while promoting environmental,
social, and governance standards. As part of KTAM’s broader strategy, the fund plays
a pivotal role in achieving the company’s ambitious target of THB 1 trillion in 
assets under management by 2025, reinforcing its position as a leader in Thailand’s
asset management industry.

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## Thai ESG X Fund’s Impact on LTFs

Chavinda Hanratanakool, Managing Director of Krungthai Asset Management, announced
that the government’s establishment of the Thai ESG X Fund, initiated on March 11,
2025, has reduced the selling pressure on Long Term Equity Funds (LTFs), now valued
at THB 170 billion. The fund’s offering from May 2 to June 30, 2025, is projected
to attract 50% of LTF capital, equating to THB 80 billion, alongside new investments
of THB 20 billion, totaling a THB 100 billion inflow into the Thai ESG X.

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## Market Growth Prospects and Strategic Goals

The Securities and Exchange Commission has permitted asset managers to start developing
Thai ESG X Funds, expecting up to 50 new funds from the industry. These funds will
allocate 80% to high-sustainability equities and the remainder to international 
markets. Chavinda anticipates the Thai stock index reaching 1,450 points, fueled
by debt restructuring and market measures. A potential interest rate cut could further
boost the market. Chavinda also plans for KTAM’s assets under management to hit 
THB 1 trillion by end-2025, up from THB 951 billion in 2024.