Mutual Fund

[mirage]

I was persuaded to put money from my savings account into a mutual fund last year. I made it clear that I did not want to risk the principal amount. It has lost 60,000 baht. It seems it must have been put into a high risk account. I was only hoping to get a return of 3% but it's lost 6%. Question ❓ should I pull it out and take the loss or let it ride another year. Anyone have experience with mutual funds. Knowledgeable advice would be appreciated. 

[Orac]

Difficult to say regarding the specific fund without details of what it is but if it was a financial advisor who persuaded you I would get your money out ASAP (if you can) since it is clearly unsuitable for your requirements/risk profile and either put it back in fixed term savings or somewhere safe until you have a better place for it where you are very clear about the risk involved.


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[MaeJoMTB]

The problem is probably your IFA (is a crook).

You do understand the 'dodgy' funds pay 'under the table' payments to IFAs of up to 20% when they're about to go under.

Was it a foreigner IFA working illegally (unregistered) in Thailand? Loads of those guys hanging around expats clubs.

 

Your 1M has probably gone.

Unless you're a multi millionaire it's often best not to invest more than $5000 in any one fund.

Spread your risk (The dodgy IFAs always want to put big money in 1 or 2 funds).

[mirage]

The fund is with SCB bank. 

[theguyfromanotherforum]

You risk your principal with every single mutual fund or every investment except the term deposit. No exceptions.

[Oxx]

OP, you were foolish:

 

(1) You invested in something you didn't understand (an absolute no-no)

 

(2) You didn't bother to read the fund literature which would have disclosed that your capital was at risk.

 

I would suggest now that you:

 

(1) Cash in the fund now and take the loss*

 

(2) Educate yourself about investments before you buy into another fund(s) (even if buying with advice from an "expert").

 

(I write fund(s) since it's rarely appropriate to invest in a single fund - you need to spread your investments around (in jargon, diversify) to reduce the overall risk.  Rather like not putting all your eggs in one basket.)

 

 

* Caveat:  if the fund is an LTF or RMF you'd need to look into the tax situation first.

 

[simoh1490]

Perhaps consider LTF's, the following link is to a site that shows the performance of the various LTF's over time: 

http://siamchart.com/fund-compare/LTF_EQ

[userabcd]

Which fund did you invest in and did a financial advisor take his cut of your funds.

 

Did you invest at the high point ie towards the end of last year. 60000 down does not seem a lot depending on how much was invested as most of the funds seem to be down at the moment.

 

I find it best to invest directly through the banks offering these funds.

 

You realise that these funds are for medium to long term investments 5 to 10 years to allow the money to grow.

 

Towards the end of last year my wife invested in some BBK and Krungsri funds for the long term and they have grown about 2 percent over a short period of time and varies with market fluctuation.

[mirage]

OK had a meeting at the branch today. They did guarantee 4,000 baht p.m. And showed me a Linked account with 57,000 baht in. What I didn't realise, that it was my money being moved not profit. Oh well it's only money ha ha. Now that I know that I am gambling it will be more fun. I do live by the rule of not putting more money into a country than I am prepared to loose. Thanks for your comments guy's.