Mutual funds recommendations - Please

[how241]

Hello,  I have a kasikorn stock account and can trade both stocks and derivatives.  I haven't had much luck in the past with stock futures, gold, and oil.  I was looking for recommendations to park some money for a few years or longer and hopefully can get a 5-9% return. I have never had a mutual funds, or similar, and was looking for some recommendations on which funds to buy.  Thank you

[tonray]

http://tools.morningstarthailand.com/th/fundquickrank/default.aspx?Site=th&LanguageId=en-TH

[Oxx]

That's a very open ended question.  Are you looking for slow and steady so you can sleep at night? Or are you happy with a lot of volatility, but probably higher returns in the longer term.

 

And what is your tax situation? LTFs and RMFs can give very significant tax advantages.

 

Anyway, one fund that is a good match for the slow and steady is TMBAM's Property Income Plus.  The 12 month dividend yield is 6.40%.  3 year annualised return is 9.95%.  It's also available as an RMF.

 

http://tools.morningstarthailand.com/th/snapshot/snapshot.aspx?id=F00000TUG1

[how241]

Thanks !!  I will look at both of these links...I can go either way, slow/steady  or higher volatility...I don't need this money to live off of...As far as taxes,  it was my understanding that you don't pay any taxes on your Thailand stocks/investments ...

[how241]

Can these funds be bought through my Kasikorn stock account ?

[Oxx]

56 minutes ago, how241 said:

Thanks !!  I will look at both of these links...I can go either way, slow/steady  or higher volatility...I don't need this money to live off of...As far as taxes,  it was my understanding that you don't pay any taxes on your Thailand stocks/investments ...

 

If you pay Thai taxes you can offset investments in LTFs and RMFs against Thai income tax.  There's a summary of benefits at http://www.crevelingandcreveling.com/blog/retirement-mutual-funds-rmfs-and-long-term-equity-funds-ltfs-ltf-tax-privileges-revised

[Oxx]

55 minutes ago, how241 said:

Can these funds be bought through my Kasikorn stock account ?

 

Almost certainly not.  Asset management companies in Thailand for the most part only sell their own funds.

 

Generally speaking, after taking any LTF/RMF benefits it's better to invest via an offshore brokerage account since (a) it gives a far wider choice of investments, (b) fund charges are far lower, (c) there's no tax on income.  Personally, of my 30 holdings only 2 are held onshore in Thailand, and one of those is TMBAM PIPF since there's no remotely similar fund available elsewhere (even in Thailand).

 

The SET has an ongoing project to make it possible to buy funds from any Thai company via a single account.  This hasn't yet come to fruition.

[how241]

On the Kasikorn website,  they have a very long list of mutual funds...I didn't think there was any tax taken from them.  I didn't think you owe and Thai tax on your investments ?   Maybe I am wrong ?

[how241]

1 hour ago, Oxx said:

 

If you pay Thai taxes you can offset investments in LTFs and RMFs against Thai income tax.  There's a summary of benefits at http://www.crevelingandcreveling.com/blog/retirement-mutual-funds-rmfs-and-long-term-equity-funds-ltfs-ltf-tax-privileges-revised

Wow !!   that seems to be very complicated...Maybe I should just buy the set50  and hold it...No tax on that, I believe...Thanks for you input.

 

[Oxx]

Trying to put this simply:

 

(1) If the fund pays income, it's taxable.  You can either opt to have 10% tax withheld and not declare the income on your tax return, or you can have the income paid gross and declare it on your tax return where it will be taxed at your marginal rate.  Funds that don't pay income (i.e. accumulation units) don't attract tax for the investor.  (It's a weird anomaly and patently unjust.)

 

(2) Buying LTFs and RMFs means you can deduct the value of the funds you buy from your income tax (subject to limits), so you save tax in the year you buy them.  This is a good thing if you're a Thai tax payer.

 

 

[how241]

Has anyone put money into Myanmar(Burma) , Vietnam,  Indonesia, or Malaysia ??   I see those cou tries have savings accts.  and 1 year fixed accounts between  6%-10%...

[Oxx]

7 minutes ago, how241 said:

Has anyone put money into Myanmar(Burma) , Vietnam,  Indonesia, or Malaysia ??   I see those cou tries have savings accts.  and 1 year fixed accounts between  6%-10%...

 

Uh, they have high interest rates for a few reasons, the main ones being (a) the value of the currency is expected to fall, (b) there's a high risk of bank failure.  It's a fool's game.

[how241]

5 minutes ago, Oxx said:

 

Uh, they have high interest rates for a few reasons, the main ones being (a) the value of the currency is expected to fall, (b) there's a high risk of bank failure.  It's a fool's game.

I don't understand why....For example, Vietnam going back 5 years ago was paying around 15%  and it has slowing slide down the past few years  to 6.5% now...A person would have averaged around 10%  and the country has been growing rapidly with a GDP  that most countries would gladly have...I haven't read about many bank failures...Moody's has good things to say :Moody's: Outlook for Vietnam banking system is positive; strong economic prospects

Edited November 17, 2017 by how241

[taipeir]

I don't understand why....For example, Vietnam going back 5 years ago was paying around 15%  and it has slowing slide down the past few years  to 6.5% now...A person would have averaged around 10%  and the country has been growing rapidly with a GDP  that most countries would gladly have...I haven't read about many bank failures...Moody's has good things to say :Moody's: Outlook for Vietnam banking system is positive; strong economic prospects

 

I think Vietnam in general is a good long term bet for most assets. Property in Ho Chi MInh seems to be half price of Bangkok and quarter or less of many Asian capitals.. Theres a lot of apartment supply but there's also large amounts of foreign investment and they could be about to make the leap to middle income within 10 years. Their birth rate is low meaning they changed invest in health and education and they have stable governance . People are entrepreneurial. Its like Taiwan 20 years ago

I am looking at Vietnam now. 

 

Also China stock market in general is undervalued but it's difficult to get money out of mainland China.

 

Malaysia ringgit dropped large amount over last few years, I could see it bounce back sooner than later. Could play the currency gap.

 

Sent from my SM-G955F using Tapatalk

 

 

 

 

 

 

 

[how241]

Thanks for all the replies...

[Oxx]

12 hours ago, how241 said:

12 hours ago, Oxx said:

 

Uh, they have high interest rates for a few reasons, the main ones being (a) the value of the currency is expected to fall, (b) there's a high risk of bank failure.  It's a fool's game.

I don't understand why...

 

Back in 2013 the VND was 20,800 to the USD.  Now it's 22,700.

 

So, if you'd invested $10,000 5 years ago it would have got you 208,000,000 VND.  Today those dong'd be worth $9,163 - a loss of just over 9%.  Of course, you'd also have received some interest, but the headline interest rate is not the whole story by any means.

[how241]

I am not sure I understand your math..." Of course, you'd also have received some interest" ?????   In the 5 years, averaging over 10% a year,  you would have gotten a  50% gain from the  interest...So you lost back 9%  in the currency exchange,  you are still ahead over 40%  for the past 5 years...Also remember that in your example,  the exchange rate went 'Bad' , against you....It could have gone the other way and the investor  would have made a even higher return...Another factor,  it you spend some time in Vietnam and spend the local currency,  then you have lost nothing with the lower exchange rate.

[how241]

8 hours ago, Oxx said:

 

Back in 2013 the VND was 20,800 to the USD.  Now it's 22,700.

 

So, if you'd invested $10,000 5 years ago it would have got you 208,000,000 VND.  Today those dong'd be worth $9,163 - a loss of just over 9%.  Of course, you'd also have received some interest, but the headline interest rate is not the whole story by any means.

This is why I was hoping to get some Thai fund that returns 4-7%,  being I live full time in Thailand and don't need to be bothered with the exchange rate volatility...

[bouph12]

http://www.thaifundstoday.com/en

 

This is a useful research tool. You can set the graph NAV to %age and time span to1 year to make it clearer.

 

You don't have to restrict yourself to Thai companies.

  

Try putting B-GLOBAL  or SCBPGF  into the search box. 

[how241]

1 hour ago, bouph12 said:

http://www.thaifundstoday.com/en

 

This is a useful research tool. You can set the graph NAV to %age and time span to1 year to make it clearer.

 

You don't have to restrict yourself to Thai companies.

  

Try putting B-GLOBAL  or SCBPGF  into the search box. 

Thanks !!!   It looks like a good website...I will check it out..

[how241]

 Forget putting  money into Myanmar(Burma)  , as they don't pay interest to foreigners.  If I read correctly...

[55Jay]

Love these threads, thanks for posting. How241.