Hi, I arrived back in Thailand from the UK, on Tuesday 26th, 4 days ago.

I already have a Bangkok bank account, I visited Kasikorn Bank and opened accounts for both myself and my girlfriend.

In the Kasikorn Bank App you can select "Investments" then can select "Mutual Funds".

To invest in these funds the Kasikorn bank staff said I need to visit again to register for investing. I couldn't register at the time as the bank had already closed it's doors.

There seems to be a lot of different mutual funds to choose.

I don't fully understand the funds and not know the management costs.

Can also select to invest in gold.

Does anyone have any experience or knowledge of investing in these mutual funds or gold?

 

I visted Bangkok bank before going to Kasinkorn Bank, to get my App working again as it had been disabled like many others.

I asked about investing and the lady showed me what I will call an insurance endowment policy. Unfortuately it is all in Thai language.

Basically you deposit an amount e.g. 200,000 THB each year for 10 years. Then totally withdraw after a total of 15 years. She kept saying that it is a guaranteed interest rate of 10% per year even after I said several times that thought that it could not be totally guaranteed.

If you had to close it and withdraw after 5 years you would forfeit a lot of the interest but would withdraw a bit more than your total deposits. There is also an insurance element that pays out if you die.

To me I feel that no investment at this time would pay a guaranteed 10%. Maybe guaranteed as long as the stockmarket rises 20% or something like that but not a total guarantee.

The lady disagreed with me and repeated that it is totally guaranteed.

Can I ask what others think?

Thanks

Keith

1 hour ago, Keith5588 said:

I don't fully understand the funds and not know the management costs.

you seem to be an honest man ...

just as a hint or advice, and something to think about: do not invest in anything you do not understand ... 

 

10% interest 555 ... they are taking you for a ride, as they often do with elderly people and those who do not read thai or only see a polished but misleading leaflet.

long-term investments from banks usually guarantee now around 2 to 3%.

 

what you describe sounds like staggered interest promises, which in reality end up giving about 2% net return, if you are lucky. bank brochures and staff confuse customers with lots of numbers, leading to investments that mainly benefit the bank.  keep your hands off such offers ... especially if you do not understand it ... 

Thanks @motdaeng 

Actually in the past I have had bank staff at Bangkok Bank branches wanting us to invest in these "Endowment policies", sometimes a hard sell suggesting that they receive a good commission.

Every time they state that a high interest rate is guaranteed which makes me think that they have been trained to say that.

I try to explain that if that is true then Bangkok bank should offer to pay customers 5% interest on their savings. it would be better than any other Thai bank so they would receive a lot of money. Then Bangkok bank could invest it and receive the guaranteed 10%. 

They either did not understand or choose not to understand or maybe I am wrong.

Cheers

Keith.

 

3 hours ago, Keith5588 said:

 

Basically you deposit an amount e.g. 200,000 THB each year for 10 years. Then totally withdraw after a total of 15 years. She kept saying that it is a guaranteed interest rate of 10% per year even after I said several times that thought that it could not be totally guaranteed.

If you had to close it and withdraw after 5 years you would forfeit a lot of the interest but would withdraw a bit more than your total deposits. There is also an insurance element that pays out if you die.

To me I feel that no investment at this time would pay a guaranteed 10%. Maybe guaranteed as long as the stockmarket rises 20% or something like that but not a total guarantee.

The lady disagreed with me and repeated that it is totally guaranteed.

Can I ask what others think?

 

 

My view?  Not true.  You will be lucky to get 3% per year from this unknown Thai Mutual fund  (?) ... and likely IMHO less.   10% ?? I have swamp land in Florida in the middle of nowhere that i can also sell you. It gives 11%. lol ! 

 

But if it is a mutual fund, there is a good possibility that either (1) any interest from the fund is taxed via a withholding tax before you are credited the interest or (2)  any interest is then subsequently taxed via a withholding tax.

 

This (being taxed) is not as bad as it sounds, as per Thai tax law that means your Thai tax obligations on that interest (if withholding tax already applied) is basically met, and it need not be counted toward your assessable income in terms of calculating if a Thai tax return is required.

 

At least that is the conclusion I came thru after digging thru Thai tax law (translations of such).  I don't want to spam the forum, but i am happy to share my research on this taxation specific assessment of mine ( in regards to Thai derived interest ) with any who ask.