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Small Investments In Thailand


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Hello everyone!

I am new in this site and I've been reading discussion posts on investing in Thailand. Most entries that I've read are for big time investors what about small investments in Thailand? Are there such thing?

Say for example you have extra 7,000-10,000 THB a month to save. Instead of just making it sleep in your bank account, are there any feasible options to invest this amount to?

Appreciate any ideas/advice from you all.

Thanks,

Angel

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A Thai specialist mutual fund (called Investment Trust in the UK).

I use one called Aberdeen New Thai Investment Trust plc, a mutual fund registered in the UK. I imagine something similar could be purchased in Thailand through a Thai bank or broker, but the beauty of using your foreign funds to invest in Thailand in your foreign country is that the investment becomes a bit of a hedge against adverse exchange rates. If the baht goes up, your investment, when measured in your home currency, will go up too.

I would not advocate putting all your eggs in one basket but $100 a month, or $250 every two months to dilute your commission fees, will make you a nice return if Thailand keeps growing in the medium and long term the way I think it will. Only do this once you have invested enough cash in a safe home (bank deposits or government backed securities are the usual) to provide 6 months to a year of your normal living expenditures.

I know people think that stock markets are dangerous (and they are if you are wanting a quick buck or if you are the type that panicks when you temporarily 'lose' 25% or more of your money and can't resist selling). From what I have seen on this website, the dangers of investing in (even the) Thai stock market pale into insignificance compared to investments in most other things falangs seem to want to plough their money into - farming, bars, guest houses, restaurants. The biggest risk would be continued and long term government turmoil which will put off foreign investors. If that happens most investments you can think of are bu$$ered anyway. The bounce back in the market from last year's craziness has been spectacular. I invested in May at 208p and December at 274p. Current share price is 260p (there has been a 5-10% correction in most Asian markets since late December. I'm up about 12% overall, but short-term gains/losses are pretty irrelevant if you have no intention of selling - in fact losses are more of an opportunity in the long term.

Risk warning: I'm not a professional adviser - just a guy on a thread who has been investing personally for 30 years (which doesn't make him right!) - you must make your own decisions. Stock market investments can go down as well as up. This poster has investments approximating 1.5% of his wealth in the investment mentioned.

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  • 5 weeks later...

The problem with all such funds is their size. They are simply too big to buy the "real Thailand". Hence many of the best/most undervalued picks here are off their radar screens.

Most interesting undervalued stocks on the SET are smaller, high growth/high dividends picks. But no fund can buy them easily as they only trade in the millions of Baht per day, not millions US$ or Pounds. Its in these funds interest to talk up the low illiquidity of such value stocks, but we as individual investors dont' have millions to invest and so don't have their restrictions.

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The problem with all such funds is their size. They are simply too big to buy the "real Thailand". Hence many of the best/most undervalued picks here are off their radar screens.

Most interesting undervalued stocks on the SET are smaller, high growth/high dividends picks. But no fund can buy them easily as they only trade in the millions of Baht per day, not millions US$ or Pounds. Its in these funds interest to talk up the low illiquidity of such value stocks, but we as individual investors dont' have millions to invest and so don't have their restrictions.

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The problem with all such funds is their size. They are simply too big to buy the "real Thailand". Hence many of the best/most undervalued picks here are off their radar screens.

Most interesting undervalued stocks on the SET are smaller, high growth/high dividends picks. But no fund can buy them easily as they only trade in the millions of Baht per day, not millions US$ or Pounds. Its in these funds interest to talk up the low illiquidity of such value stocks, but we as individual investors dont' have millions to invest and so don't have their restrictions.

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