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[pitrevie]

I have been asked by a Thai friend where he should invest a small lump sum and where he could save a fixed sum each month. Now in the UK there are loads of newspaper articles etc at least giving some idea. As he is interested in long term savings I would have pointed to unit trusts but I cannot seem to find the equivalent in Thailand. Does anyone have ideas for long term savings in Thailand?

[farang555]

invest in america!

im sure with somepaperwork he can invest in american mutual funds. no loaded of course!

[AFKAFSinLOS]

I have been asked by a Thai friend where he should invest a small lump sum and where he could save a fixed sum each month. Now in the UK there are loads of newspaper articles etc at least giving some idea. As he is interested in long term savings I would have pointed to unit trusts but I cannot seem to find the equivalent in Thailand. Does anyone have ideas for long term savings in Thailand?

There are also a fair amount of articles and ads in the English Language Bangkok Post and The Nation. You won't see very many in Thai newspapers, except perhaps Krungthep Turakit.

There's actually quite a wide range of similar investments here, and some are actually better for a Thai than anything a UK person can get for themselves...

Most banks now sell these for a variety of unit trust/ fund management houses. They're often referred to as mutual funds instead of unit trusts. Your friend could also go direct to one of the reputable global firms such as Aberdeen or ING, or go to a broker such as Phillips...in addition to their local bank

[Shotime]

Buy US $s.

[samran]

long term fund offered by the likes of Aberdeen and ING. They are tax deductable if you hold them for at least 5 calendar years.

[farang555]

do people in thailand even know how much expenses eat away at ones returns.

study no load funds.

[samran]

do people in thailand even know how much expenses eat away at ones returns.

study no load funds.

yes, and the ones I mentioned are incredibly low. 1% front end fee, 1% back end fee.

speaking about expenses...how much would it cost to trasfer money each month offshore to a no-load fund based in the states?

[CaptHaddock]

do people in thailand even know how much expenses eat away at ones returns.

yes, and the ones I mentioned are incredibly low. 1% front end fee, 1% back end fee.

Yikes! 2%! What extremely high loads and there is probably also an expense ratio that is not mentioned! Low fees are like 0.11% on US Vanguard Funds, for example. This quote form one of the numerous studies that show that even those few managers who have stock-picking ability cannot earn back their fees. So their funds underperform low-cost index funds:

"The researchers' tests found that, on a pre-expense basis, 9.6 percent of mutual fund managers in 2006 showed genuine market-beating ability — far higher than the 0.6 percent after expenses were taken into account. This suggests that one in 10 managers may still have market-beating ability. It's just that they can't come out ahead after all their funds' fees and expenses are paid."

http://www.nytimes.com/2008/07/13/business...mers&st=cse

[farang555]

thats what i was getting at mr haddock.

but its not wise to question super moderators

[gregb]

TMB Gold Fund.

Linked to Street Tracks Gold ETF in the US.

Just walk into any TMB and open it. Even comes with an ATM card so you can withdraw money if you need to.

Good option for a Thai investor.

[AFKAFSinLOS]

do people in thailand even know how much expenses eat away at ones returns.

yes, and the ones I mentioned are incredibly low. 1% front end fee, 1% back end fee.

Yikes! 2%! What extremely high loads and there is probably also an expense ratio that is not mentioned! Low fees are like 0.11% on US Vanguard Funds, for example. This quote form one of the numerous studies that show that even those few managers who have stock-picking ability cannot earn back their fees. So their funds underperform low-cost index funds:

"The researchers' tests found that, on a pre-expense basis, 9.6 percent of mutual fund managers in 2006 showed genuine market-beating ability — far higher than the 0.6 percent after expenses were taken into account. This suggests that one in 10 managers may still have market-beating ability. It's just that they can't come out ahead after all their funds' fees and expenses are paid."

http://www.nytimes.com/2008/07/13/business...mers&st=cse

Your comment on managed funds vs indexed funds or ETFs is commonly touted in the UK/US and Europe. There is much merit in it there,and it can be worth pointing out. But check on which funds they used and I bet the survey was based on US funds.

Now in a Thai context, whaht you have to bear in mind is that this doesn't apply to the same extent. You'll find that the funds Samran mentioned will have far exceeded any main market Thai Index fund you pick...And more importantly on a consistent basis In Thailand it is worth paying that extra 1% or so for a managed fund compared to a tracker...This is the opposite of what you are taught in the west, but it holds up year after year in Thailand...