Only money market funds and foreign funds recorded net purchases in the first nine months of this year, while the overall mutual fund industry reported net outflows of 230 billion baht as investors divested high-risk funds amid market volatility, says Morningstar Research (Thailand).
Oil mutual funds posted the highest average return of 65.9% in 2021, spurred by the rise in oil prices based on low supply and higher demand, according to Morningstar Research Thailand.
Following a record-breaking six months of inflows into US mutual funds reaching a total of US$720 billion, Thai investors should focus their picks on value stocks reinforcing an economic recovery, says Morningstar Research Thailand.
Thai FIFs get off to good start this year
published : 13 Jul 2021 at 04:00
The net asset value of Thai foreign investment funds (FIFs) hit 1 trillion baht for the first time in April, raising the total value of Thai equity funds by 39.6% from last year.
Almost all of the new FIFs are investments in equity assets in China and other global stock markets expected to post high returns as the global economy has started to recover this year, according to Morningstar Research Thailand.
The total valuation of Thai FIFs reached 1 trillion baht in April and dropped to 990 billion baht at the end of June, said Chayanee Juengmanon, senior research analyst at Morningstar.
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Total net asset value in Thailand s mutual fund recorded 2.6% growth in the first quarter, championed by the Oil Fund which gave the highest return at 24% while the gold fund sank 9%, says Morningstar Research Thailand.
Investment in sustainable funds around the world is also increasing amid growing concerns over global climate change and the Covid-19 crisis.
The total net inflow of Thai mutual funds was recorded at 33.4 billion baht for the first quarter, up 2.6% from the end of 2020. Equity funds were reportedly the main contributor to the inflow while the Thai fund industry, including mutual funds, reported total net asset value at 5.2 trillion baht, up 13.5% year-over-year.