Options for small investments?

[Deserted]

Hi there, I need to set aside about 500,000 baht for my daughter's university fees, but that's like 8 years off. What options do I have? I don't need to touch it and would prefer it if I couldn't. DO the major banks offer long-term investment options for that amount? I am with the SCB. 

 

Thanks for the input.

[tonray]

The banks have brokerage arms....open an account (not sure of foreigner details) and buy a broad based Thai stock market mutual fund / ETF and let it sit for 8 years.

[Etaoin Shrdlu]

SCB offers mutual funds and stocks and an investment account is not difficult to open for Thai nationals. 

 

You don't mention your nationality, but foreign mutual funds are a tax compliance nightmare for US citizens. Best to avoid. Purchase individual stocks instead.

Edited March 16, 2022 by Etaoin Shrdlu

[Oxx]

First some terminology.  Slightly simplifying:

 

- Banks offer bank accounts

- Asset management companies offer funds

- Brokerage companies offer stocks (including ETFs) and funds

 

In Thailand most bank parent companies also own asset management companies and brokerage companies, but there are also independent management companies and brokerage companies, so one's not tied to a bank.  (So, for example, there's Krung Sri bank, Krung Sri Asset Management, and Krung Sri Securities - they are all separate companies.)  AFAIK, you can not open brokerage accounts at bank branches - the offices are always separate.

 

Anyway, mutual funds are probably the right way to go.  If you're satisfied with the range of funds from SCBAM, then opening an account via your local bank branch is the easiest way forward.

 

If you want a broader range of funds, you will probably find it easiest to open an account with an independent broker such as Phillips POEMS, Maybank Kim Eng, or KGI (to name but a few).

 

You should definitely check out the tax advantages of Super Savings Fund (SSFs).  You won't be able to benefit for the first couple of years of university because of the minimum holding period, but potentially you could for the third.

 

I'm assuming you're not American, and that the funds are already in Thailand.

 

Edited March 16, 2022 by Oxx

[userabcd]

4 hours ago, tonray said:

The banks have brokerage arms....open an account (not sure of foreigner details) and buy a broad based Thai stock market mutual fund / ETF and let it sit for 8 years.

Need to study and choose wisely which mutual funds.

 

My wife has invested in a few of them with different banks and they have shown no or very little growth over 6 years now and most of them are in negative territory. Would have been better to keep the capital in the bank and at least get the interest and have retained the capital.

Edited March 16, 2022 by userabcd

[Deserted]

Ok thanks guys. Please forgive my ignorance but in the UK we have such things as ISA accounts, which require a larger deposit but a higher rate of interest. Does Thailand have such things as a high saver account. Apologies for asking here but I won't be back for a while, so I can't pop into the SCB anytime soon. If I put a lump sum of, for example, 500,000 baht and say I don't want to touch if for 8 years, would they have an account type which I could profit from more than the usual current account. 

[userabcd]

1 hour ago, Deserted said:

Ok thanks guys. Please forgive my ignorance but in the UK we have such things as ISA accounts, which require a larger deposit but a higher rate of interest. Does Thailand have such things as a high saver account. Apologies for asking here but I won't be back for a while, so I can't pop into the SCB anytime soon. If I put a lump sum of, for example, 500,000 baht and say I don't want to touch if for 8 years, would they have an account type which I could profit from more than the usual current account. 

Dont think such ISA product exists in Thailand and interest rates are pretty bleak atm. Probably around max 1% per annum which after 8 years is not going to ne much.

 

Maybe consider part investing in some healthy stable growth blue chip Thai companies stocks which also regularly pay dividends.

 

Edited March 17, 2022 by userabcd

[Pravda]

On 3/16/2022 at 11:28 AM, userabcd said:

Need to study and choose wisely which mutual funds.

 

My wife has invested in a few of them with different banks and they have shown no or very little growth over 6 years now and most of them are in negative territory. Would have been better to keep the capital in the bank and at least get the interest and have retained the capital.

Exactly the same thing with my wife's "investments". 

 

School fees 8 years in the future? In all seriousness expect them to triple. No safe investment for that. If you were back home your government would probably offer a savings account such as registered education savings plan when the government also pitches in. No such thing in Thailand as I'm aware.

 

 

 

[Deserted]

Ah thanks, that would explain why I haven't been able to find one. So the biggest gains also carry the greatest risks? Shares right?