First Step to Wealth: Investing in Mutual Funds for the Year 2569

Why Have Mutual Funds Become a Favorite Choice for Thai Investors?

“I want to build wealth but don’t know where to start” – this is a common statement many people make. The truth is, regardless of your experience or how much capital you have, you can create wealth through a tool called mutual funds, which has become a popular option for retail investors in Thailand.

Mutual Funds: One Insurance for Financial Growth

The simplest explanation ever

Imagine: Mutual Fund (Mutual Fund) is like many investors pooling their money together into a large fund, then entrusting it to a professional (called “Fund Manager”) who works at a fund management company ((Asset Management Company)) to manage and invest in various assets according to a predetermined plan.

When you invest, your money is converted into “unit trusts” (Units), each valued at a price called NAV (Net Asset Value) – the value calculated and disclosed at the end of each trading day. If the assets held by the fund increase in value, the NAV rises, and that’s your profit.

Who should invest in mutual funds?

Mutual funds are not suitable for just one group:

• Beginners: who lack deep stock analysis knowledge – the fund manager will be your professional advisor
• Time-constrained investors: expert teams monitor the market and economic news for you
• Risk diversifiers: with small capital, you can access a diversified portfolio of assets
• Tax benefit seekers: some funds like SSF, RMF, ThaiESG offer significant tax advantages

Additionally, with larger capital, fund managers can access special investment opportunities unavailable to retail investors, such as additional IPOs or private debt instruments.

Understanding Types of Mutual Funds

Categorized by Asset Type

1. Money Market Funds (Money Market Fund)

• Risk: Lowest
• Suitable for: Short-term savings or emergency funds
• Invests in: Deposits, short-term debt instruments

2. Fixed Income Funds (Fixed Income Fund)

• Risk: Low to Moderate
• Suitable for: Those seeking higher returns than savings accounts but with low risk
• Invests in: Bonds, debentures

3. Equity Funds (Equity Fund)

• Risk: High
• Suitable for: Long-term investors who can tolerate volatility
• Invests in: Domestic and international stocks

4. Mixed/Hybrid Funds (Mixed/Hybrid Fund)

• Risk: Moderate
• Suitable for: Hesitant investors wanting diversification
• Invests in: Both stocks and bonds ((Flexible ratio))

5. Alternative Investment Funds (Alternative Investment Fund)

• Risk: Very high
• Suitable for: Experienced investors seeking portfolio diversification
• Invests in: Gold, oil, real estate

Special Investment Policies

Index Funds (Index Fund) and ETFs

• Passive strategies tracking an index
• Lower fees
• ETFs can be traded in real-time on stock exchanges

Sector Funds (Sector Fund)

• Focused on a single industry (Technology, Healthcare, Energy)
• High risk but potential for high returns if predictions are correct

Foreign Investment Funds - FIF (FIF)

• Opens access to global stock markets
• Diversifies investments into the US, China, Vietnam, Europe

Tax-Advantaged Funds

• SSF, RMF, ThaiESG offer tax benefits
• Have specific holding period conditions

Tips for Choosing the Right Fund

Step 1: Deeply self-assess

Before looking for a good fund, you must understand yourself clearly:

Investment Goals (Goal)

• What are you investing for? Retirement? Buying a car? Education?
• Different goals lead to different fund choices

Investment Horizon (Time Horizon)

• The longer the horizon, the more you can invest in high-risk assets

Risk Tolerance (Risk Tolerance)

• Can you sleep well at night? When your portfolio drops 10-20%?

Step 2: Study the fund’s investment policy

Read the Fund Fact Sheet to understand:

• Assets invested
• Target countries
• Investment strategy (Active or Passive)

Step 3: Analyze in-depth data

Past Performance (Past Performance)

• Compare with benchmark (Benchmark)
• Compare with other funds in the same group
• Note: Past results do not guarantee future performance

Maximum Drawdown

• Shows the maximum loss experienced
• Tells you if you can tolerate such losses

Sharpe Ratio

• Measures efficiency: return per unit of risk
• Higher = better risk-adjusted returns

Fees (Fees)

• A 1% difference per year can amount to many percentage points over 20-30 years

10 Funds to Watch in 2026

Global Trend: Economic Overview

2026 is expected to be a “year of two halves” – volatile first half, recovery in the second. Mega trends like AI, clean energy, and advanced chips will drive the market.

Thai Dividend-Focused Equity Funds

SCBDV - SCB Thai Equity Dividend Fund

• Asset Management: SCBAM
• Type: Thai dividend stocks
• Strategy: Large-cap Thai stocks (SET) with consistent dividends
• Risk level: 6
• Suitable for: Cash flow + Thai stock market volatility

KFSDIV - Krungsri Dividend Equity Fund

• Asset Management: KSAM
• Type: Thai dividend stocks
• Strategy: Dividend stocks + mid/small-cap stocks (mixed)
• Risk level: 6
• Suitable for: Growth + income

Following Global Tech Trends

KT-WTAI-A - KTAM World Technology AI Fund

• Asset Management: KTAM
• Type: Feeder Fund (Invests via Allianz Global Artificial Intelligence Fund)
• Strategy: Companies benefiting from AI worldwide
• Risk level: 6
• Suitable for: Believers in AI potential, long-term investors

B-INNOTECH - Bualuang Global Innovation & Technology Fund

• Asset Management: BBLAM
• Type: Feeder Fund (Invests via Fidelity Funds - Global Technology Fund)
• Strategy: Cloud tech, E-commerce, Fintech, Big Tech globally
• Risk level: 7
• Suitable for: Growth seekers + high risk tolerance

Emerging Markets: Great Opportunities

PRINCIPAL VNEQ-A - Principal Vietnam Equity Fund

• Asset Management: Principal Asset Management
• Type: Vietnam equity (Active)
• Strategy: Select Vietnamese stocks: banks, retail, tech
• Risk level: 6
• Suitable for: Diversification into emerging markets

Safe Havens: Bonds

KTSTPLUS-A - Krungthai Short-Term Bond Plus Fund

• Asset Management: KTAM
• Type: Short-term bonds
• Strategy: Quality bonds (Investment Grade), average maturity under 1 year
• Risk level: 4
• Suitable for: Risk reduction, short-term savings

High Flexibility

TISCOFLEXP - TISCO Flexible Plus Fund

• Asset Management: TISCO AM
• Type: Flexible hybrid fund
• Strategy: Adjust stock/bond/other assets 0-100% based on market conditions
• Risk level: 6
• Suitable for: Confident in fund manager’s skill

( Sustainability Mega Trend

KFCLIMA-A - Krungsri ESG Climate Tech Fund

• Asset Management: KSAM
• Type: Feeder Fund )Invests via DWS Invest ESG Climate Tech###
• Strategy: Companies solving climate change issues: clean energy, EV, energy efficiency
• Risk level: 6
• Suitable for: Future sustainable investments

( Essential Businesses

K-GHEALTH - K-Global Healthcare Fund

• Asset Management: KAsset
• Type: Feeder Fund )Invests via JPMorgan Funds - Global Healthcare Fund###
• Strategy: Healthcare companies: pharma, medtech, medical services
• Risk level: 7
• Suitable for: Stable growth (Defensive Growth)

( Believing in the Thai Market

ASP-THAIESG - Asset Plus Thai ESG Equity Fund

• Asset Management: Asset Plus
• Type: Thai stocks )ThaiESG, Active###
• Strategy: Select sustainable Thai stocks (Based on SET ESG Rating)
• Risk level: 6
• Suitable for: Quality Thai stocks + tax benefits

Pros and Cons: Walking Between Light and Shadow

( Advantages of Investing in Mutual Funds

Expert Diversification With little money, own multiple assets, reducing concentration risk

Professional Management Team of analysts monitoring markets 24/7

High Liquidity Available every trading day, easy to convert to cash

Easy Access Start with hundreds or thousands of baht

Variety of Options From very low risk to high risk, meeting all goals

) Disadvantages

Long-term Fee Burden Even 1-2% per year accumulates significantly over 20-30 years

No Direct Control You don’t pick individual stocks; everything depends on the fund manager

Management Risk Poor decisions by the manager can reduce performance

Tax on Dividends Dividends are subject to 10% withholding tax

Mutual Fund Fees: Hidden Clues You Must Know

Visible Fees

Sales Charges

• Paid when purchasing units
• For example, 1.5% means from 10,000 THB, only 9,850 THB goes into the fund

Redemption Fees

• Paid when selling units ###less common###

( Hidden Fees

Embedded in NAV figures but impact returns:

Management Fee – paid to fund managers and teams

Custodian Fee – paid to banks for safekeeping assets

Registrar Fee – managing investor data

All these add up to Total Expense Ratio )TER### – something to compare seriously

Achieve Your Investment Goals

Investing in mutual funds is a smart starting point for long-term wealth creation. Whether you are a beginner or experienced, by self-assessing clearly, choosing funds aligned with your goals, and understanding fees, you are equipped.

In 2026, filled with opportunities from mega trends like AI, clean energy, and healthcare, a well-structured mutual fund portfolio will be your key to a secure financial future. Don’t let time pass—start today.