Best Way To Invest Money In Thailand.

[fletchsmile]

http://www.aberdeen-...f/Thailand/Home

http://www.ingfunds.co.th/EN/index.asp

Yes, I'd go the unit trust/ mutual fund route too. My first ever investments in Thai mutual funds were with Aberdeen back in 1998/1999, so you could say I put my money where my mouth was. My annual return on Aberdeen Growth fund is around 20% per year. Best year up just over 100%. Worst year down 40%. So they are volatile and not for the short term, but this evens out over time. Suitable for mid-long term holdings to build up capital for the future and not for a quick baht.

These are two of the best fund management houses for foreigners on many levels and offer a good range of funds. Also Aberdeen speak good English, so you can actually talk to them about what you want and are trying to acheive.

If working here, and paying tax. Check out their Long Term Equity Funds (LTFs) which you can get a tax credit back for, and have the tax man effectively fund between 10% - 37% of your investment. Investing regular month sums for baht/ dollar cost averaging also helps smooth the ups and downs. These can form good core holdings. I would prefer these to buying and selling stocks and shares yourself until you know what you're doing. Following the investments will help build up your financial knowledge, until you are more comfortable and hit a stage where you might feel like buying single stocks and taking more risk.

[duncanb]

Buy a new condo not a 10 million baht unit but something for 1-2 million baht which many foreigners and middle class Thais can afford (bigger market for re-sale or rentals also). Buy off plan so it appreciates in value during the construction phase, and buy from reputable developers such as Q House or LPN.

You're right, buying off plan in Pattaya is the best investment you can make.

I heard Suan Sawarn,The Park and Heights Holdings among several others offer some great opportunities at the moment.

Every traveller getting off the plane thinks to themselves 'Ooh! I can afford an apartment at 1-2 million!, I get a guaranteed good return on my investment and I am now a player, an investor, someone who has a stake in Thailand and most of all status at the bar! I have arrived! I have somewhere now cheap to live OR invest. This is a one-way bet! A no-risk future'

Please someone give me a job working for one of the developer companies.

And now for the Achilles Heel. The strong point of the sale (price) will be transferred to the weakness in the resale price. The quality of build will be poor. Not so poor that the place will not look wonderful for 12-18 months while the place is being sold off, but after that that the bits will begin to fall off. If you are here for 3 weeks you don't see so much but watching a place go up over 3 months makes one marvel at how shoddy construction can be masked by a covering of plaster and concrete and paint. Not to worry some will say, I am here for good. And what will be easier than selling my place in 5 years time with inflation and getting my money back? You think so? The worm in the bud is that after you have distressed sold your shoddy apartment for a significant amount less than you paid for it, your capital loss will more than wipe out any gains so you think you will have made. A good investment. No way.

I did say use a reputable builder and I did mention two companies which I view as reputable. Without going into great detail, I have bought from these companies and their developments have taken just short of 2 years to complete and am about to sell one of the units which will make me a good 30% profit. If a 30% return in a year is not a good investment, then what is?

[duncanb]

Buy a new condo not a 10 million baht unit but something for 1-2 million baht which many foreigners and middle class Thais can afford (bigger market for re-sale or rentals also). Buy off plan so it appreciates in value during the construction phase, and buy from reputable developers such as Q House or LPN.

You're right, buying off plan in Pattaya is the best investment you can make.

I heard Suan Sawarn,The Park and Heights Holdings among several others offer some great opportunities at the moment.

Did you read what I wrote. Did I mention Pattaya in my original reply?

[pipo1000]

Buy a new condo not a 10 million baht unit but something for 1-2 million baht which many foreigners and middle class Thais can afford (bigger market for re-sale or rentals also). Buy off plan so it appreciates in value during the construction phase, and buy from reputable developers such as Q House or LPN.

You're right, buying off plan in Pattaya is the best investment you can make.

I heard Suan Sawarn,The Park and Heights Holdings among several others offer some great opportunities at the moment.

Every traveller getting off the plane thinks to themselves 'Ooh! I can afford an apartment at 1-2 million!, I get a guaranteed good return on my investment and I am now a player, an investor, someone who has a stake in Thailand and most of all status at the bar! I have arrived! I have somewhere now cheap to live OR invest. This is a one-way bet! A no-risk future'

Please someone give me a job working for one of the developer companies.

And now for the Achilles Heel. The strong point of the sale (price) will be transferred to the weakness in the resale price. The quality of build will be poor. Not so poor that the place will not look wonderful for 12-18 months while the place is being sold off, but after that that the bits will begin to fall off. If you are here for 3 weeks you don't see so much but watching a place go up over 3 months makes one marvel at how shoddy construction can be masked by a covering of plaster and concrete and paint. Not to worry some will say, I am here for good. And what will be easier than selling my place in 5 years time with inflation and getting my money back? You think so? The worm in the bud is that after you have distressed sold your shoddy apartment for a significant amount less than you paid for it, your capital loss will more than wipe out any gains so you think you will have made. A good investment. No way.

I did say use a reputable builder and I did mention two companies which I view as reputable. Without going into great detail, I have bought from these companies and their developments have taken just short of 2 years to complete and am about to sell one of the units which will make me a good 30% profit. If a 30% return in a year is not a good investment, then what is?

Keep us informed when you have actually sold your unit and received the money at a 30% profit, and not when you are about to sell.

[gk10002000]

Buy as reliable an internet service as possible, then monitor and invest or trade with your funds overseas in your home country. If you must invest in Thailand, then I defer to the more knowledgable folks in that are on this board.

[Phil Conners]

Buying off plan can be very profitable but of course you need to do your DD and know the company you're dealing with. I would certainly never leave it to someone else to handle my investments, I've learned the hard way through some large investment banks that their first priority is THEIR investment, not mine.

[rgs2001uk]

http://www.aberdeen-...f/Thailand/Home

http://www.ingfunds.co.th/EN/index.asp

Yes, I'd go the unit trust/ mutual fund route too. My first ever investments in Thai mutual funds were with Aberdeen back in 1998/1999, so you could say I put my money where my mouth was. My annual return on Aberdeen Growth fund is around 20% per year. Best year up just over 100%. Worst year down 40%. So they are volatile and not for the short term, but this evens out over time. Suitable for mid-long term holdings to build up capital for the future and not for a quick baht.

These are two of the best fund management houses for foreigners on many levels and offer a good range of funds. Also Aberdeen speak good English, so you can actually talk to them about what you want and are trying to acheive.

If working here, and paying tax. Check out their Long Term Equity Funds (LTFs) which you can get a tax credit back for, and have the tax man effectively fund between 10% - 37% of your investment. Investing regular month sums for baht/ dollar cost averaging also helps smooth the ups and downs. These can form good core holdings. I would prefer these to buying and selling stocks and shares yourself until you know what you're doing. Following the investments will help build up your financial knowledge, until you are more comfortable and hit a stage where you might feel like buying single stocks and taking more risk.

Two excellent products mentioned by JSixpack.

ING is located in the Sindhorn building on Wireless Rd next to the Americam Embassay.

Kh Joy speaks excellent English and is very knowledgeable.

I hold both these products, as mentioned above these arent for the get rich quick investor.

Fletch I seem to recall my best year for Aberdeen was 2003, up over 100% (130% if my memory is correct).

[dezy1801]

Depends on two things firstly how long do you want the money to grow and do you need to use this money for your living costs, and secondly how much do you plan on investing.?

Edited June 24, 2012 by dezy1801

[yoshiwara]

http://www.aberdeen-...f/Thailand/Home

http://www.ingfunds.co.th/EN/index.asp

Yes, I'd go the unit trust/ mutual fund route too.

The downside now is that in a low interest environment, management fees can eat up a lot of the potential gain.

[theblether]

I would say the Thai stock market. It is both easy and cheap to get started here, much more so than in the west. Of course you shouldn't just jump into the deep water, but either paper trade for a year or so to get an understanding of how it works, what news to believe (and more importantly, what not to believe).

I do not have a clue about Thai stock market, at all. Where do i begin to learn about it ?

I am totally lost when it comes to this...... never felt the need to look at it before, but now in a better position to maybe.

I would go down to ktzmico, their office is just after Tropical Bert, 2nd road, Soi 6.5.

Get signed up for a brokerage account, you need to make a small deposit but it is not much, maybe 10k or so to get started. Then they email you recommendations every day and they give you instructions how to use their trading website.

Start by just following everything until you're comfortable you understand how it works. I'd suggest a year to experience the seasonal changes, but up to you really.

I'm not a Thai resident, can I open an account with ktzmico? Is there a branch in Chiang Mai? It would be interesting for me to throw some pin money in and learn a wee bit about the Thai market.

[fletchsmile]

http://www.aberdeen-...f/Thailand/Home

http://www.ingfunds.co.th/EN/index.asp

Yes, I'd go the unit trust/ mutual fund route too. My first ever investments in Thai mutual funds were with Aberdeen back in 1998/1999, so you could say I put my money where my mouth was. My annual return on Aberdeen Growth fund is around 20% per year. Best year up just over 100%. Worst year down 40%. So they are volatile and not for the short term, but this evens out over time. Suitable for mid-long term holdings to build up capital for the future and not for a quick baht.

These are two of the best fund management houses for foreigners on many levels and offer a good range of funds. Also Aberdeen speak good English, so you can actually talk to them about what you want and are trying to acheive.

If working here, and paying tax. Check out their Long Term Equity Funds (LTFs) which you can get a tax credit back for, and have the tax man effectively fund between 10% - 37% of your investment. Investing regular month sums for baht/ dollar cost averaging also helps smooth the ups and downs. These can form good core holdings. I would prefer these to buying and selling stocks and shares yourself until you know what you're doing. Following the investments will help build up your financial knowledge, until you are more comfortable and hit a stage where you might feel like buying single stocks and taking more risk.

Two excellent products mentioned by JSixpack.

ING is located in the Sindhorn building on Wireless Rd next to the Americam Embassay.

Kh Joy speaks excellent English and is very knowledgeable.

I hold both these products, as mentioned above these arent for the get rich quick investor.

Fletch I seem to recall my best year for Aberdeen was 2003, up over 100% (130% if my memory is correct).

Yes rgs, 2003 was a vintage year. 2002 was a good year as well. Aberdeen Growth was up 40%+ then, while most of my UK, Europe (western) equities were down. So Thailand was a nice place to be invested. Not dissimilar to this year, where I'm having a tough time on many western equity funds, but Thai funds up between 15% - 22%.

[fletchsmile]

http://www.aberdeen-...f/Thailand/Home

http://www.ingfunds.co.th/EN/index.asp

Yes, I'd go the unit trust/ mutual fund route too.

The downside now is that in a low interest environment, management fees can eat up a lot of the potential gain.

Check out the actual fees on the links that JsixPack provided, you may be surprised. In my view they are reasonable. Annual fees of 1.5%-ish aren't that important given the double digit returns that have been enjoyed. I consider myself an experienced investor, but reckon I'd struggle to consistently deliver the performance they have in Thailand. If buying Thai equities yourself you'll pay around 0.2% per trade, and will have nowhere near the access to information and market resources the fund management houses here have, especially on the Thai market.

Much cheaper than going thru a Thai based international financial advisor (IFA) and getting sold an offshore portfolio bond (OPB). Much cheaper than Singapore. Can't quite compete with going thru a discount broker in say UK for fees, however, but the UK/US western providers often aren't as convenient for someone living here if you want more than just online execution, and need to talk face to face. Or if you're looking to invest in THB.

[Rancid]

I've babbled on about this before but will bore the punters with my opnion once again.

If your home country has banks paying good interest rates such as Australia (5%+) just leave your money there, up to $250K per account as that is what the government guarantees, if like the US then obviously bank interest is unattractive so you need to look at riskier options.

I wouldn't put my lump sum in the stock market, if it tanks, and it will, then you can get seriously wiped out. Many financial advisors actually know less than you do, they are often getting kickbacks on certain packages, they are not your friend. Personally I play US Options, but that doesn't require a lot of money as it is geared, and as such also dangerous if you don't understand how it works.

Many busineses here die, so unless experienced I would stay clear of that. I have made money here in buying physical gold and real estate, but both were about getting the timing right (like everryhing in life). Property is relatively safe, prices can drop but if you don't need to sell will eventually recover. If buying a rental condo (as you can own it) just buy in the right locaton and right price. If a well located popular building you should have no trouble renting. Just don't buy a lemon on the second floor with crap furnishings, road noise and no view, spend the time and look around.

[JSixpack]

I wouldn't put my lump sum in the stock market, if it tanks, and it will, then you can get seriously wiped out.

No, you use a stop-loss & pay some attention to the technical indicators. You're in cash before it tanks, or your fund manager has already upped the percentage of cash, limited the losses, and is ready to play the recovery.

[pomchop]

Just for fun...on the lighter side of "investing in Thailand".

1. Pig Farms. A bit of a "sloppy" business.

2. Water Buffaloes: Always seem to be sick and dying but in big demand.

3. Guest House: Been there for twenty years and never made a profit but a few coats of paint and you'll become a Hilton..

4. Grow Rubber Trees: Very good business if you want to watch your money disappear a drip at a time..

5. Buy or open a Bar: Deal with drunks, temperamental girls and ladyboys and thai mafia who will want to be your "friend".

6. Buy Lottery Tickets: Solid investment plan to think YOU will be the one in 60 million to win. Try to buy from local lottery sellers who go table to table in restaurants.

7. Invest in Thai Stock market: A very good idea especially if you know nothing about thai stocks and lost your butt in the american dot.com bubble.

8. Get involved in currency exchange futures: Excellent if you are a genius with a crystal ball, deep pockets, and nerves of steel.

9. Write a book about your experiences with Thai Bar Girls: Yeah that will be a best seller for sure as no competition at all.

10. Ring the Bell: Be sure and ring the bell in every bar and you'lll quickly find an entire new group of friends who will suck up to you and tell you how clever you are and maybe even let you in on a few of their secret investments

[PattayaPhom]

There are a lot of Thais driving around in their 10 Million Baht Mercs...when in Rome......where do they invest?

[dezy1801]

There are a lot of Thais driving around in their 10 Million Baht Mercs...when in Rome......where do they invest?

Afterall this is Thailand of course there are going to be lots of Thais driving expensive cars. So how much are you looking at investing.

[Naam]

I wouldn't put my lump sum in the stock market, if it tanks, and it will, then you can get seriously wiped out.

No, you use a stop-loss & pay some attention to the technical indicators. You're in cash before it tanks, or your fund manager has already upped the percentage of cash, limited the losses, and is ready to play the recovery.

and when the prices fall like rocks through stop-losses, you are not on the priority list of "your" fund manager and there is no recovery for years to come (like in 2000) you can always ask the tooth fairy to hand out a few bucks for a noodle soup. another very popular alternative is to experience gravity when jumping from a balcony.

[GreenSnapper]

There are a lot of Thais driving around in their 10 Million Baht Mercs...when in Rome......where do they invest?

In overpriced Mercedes and overpriced condos.

And the Mia Noi.

[ThailandInvestmentGuide]

Hi PG

You are unlikely to get specific 'tips' of value to you in threads like this. People's investment needs are determined in large part by their specific individual circumstances. This is why the first thing a good financial advisor will do is sit you down and get a very clear and detailed understanding of you and your particular investment needs. The more you read about investment and listen to others experiences, then the more you will you will understand exactly what I mean by this.

The only universally applicable tip is "don't rush - do your homework". As Yoshi has already suggested do not invest in anything that you do not understand. Sure you can use professional advisors - but only after you have ramped up your level of financial general knowledge to the point that you will be able to tell whether or not they are 'having a lend of you'.

[elektrified]

http://www.aberdeen-...f/Thailand/Home

http://www.ingfunds.co.th/EN/index.asp

Yes, I'd go the unit trust/ mutual fund route too. My first ever investments in Thai mutual funds were with Aberdeen back in 1998/1999, so you could say I put my money where my mouth was. My annual return on Aberdeen Growth fund is around 20% per year. Best year up just over 100%. Worst year down 40%. So they are volatile and not for the short term, but this evens out over time. Suitable for mid-long term holdings to build up capital for the future and not for a quick baht.

These are two of the best fund management houses for foreigners on many levels and offer a good range of funds. Also Aberdeen speak good English, so you can actually talk to them about what you want and are trying to acheive.

If working here, and paying tax. Check out their Long Term Equity Funds (LTFs) which you can get a tax credit back for, and have the tax man effectively fund between 10% - 37% of your investment. Investing regular month sums for baht/ dollar cost averaging also helps smooth the ups and downs. These can form good core holdings. I would prefer these to buying and selling stocks and shares yourself until you know what you're doing. Following the investments will help build up your financial knowledge, until you are more comfortable and hit a stage where you might feel like buying single stocks and taking more risk.

Two excellent products mentioned by JSixpack.

ING is located in the Sindhorn building on Wireless Rd next to the Americam Embassay.

Kh Joy speaks excellent English and is very knowledgeable.

I hold both these products, as mentioned above these arent for the get rich quick investor.

Fletch I seem to recall my best year for Aberdeen was 2003, up over 100% (130% if my memory is correct).

I agree with the advice given here.

[Naam]

I agree with the advice given here.

i apologise for not agreeing with the advice given here

[brit1984]

Hi PG

You are unlikely to get specific 'tips' of value to you in threads like this. People's investment needs are determined in large part by their specific individual circumstances. This is why the first thing a good financial advisor will do is sit you down and get a very clear and detailed understanding of you and your particular investment needs. The more you read about investment and listen to others experiences, then the more you will you will understand exactly what I mean by this.

The only universally applicable tip is "don't rush - do your homework". As Yoshi has already suggested do not invest in anything that you do not understand. Sure you can use professional advisors - but only after you have ramped up your level of financial general knowledge to the point that you will be able to tell whether or not they are 'having a lend of you'.

Very wise words. Indeed, if the OP does not have a close family or friend who is financially literate, it would be wise to do some reading before committing any capital.

Obviously, as the OP is interested specifically in investing in Thailand, your book should be top of the reading list, to gain an understanding of the nuances here.

If possible, I also suggest the OP reads "Security Analysis" by Benjamin Graham and David Dodd, which provides an unrivalled overview of investment theory in general.

Sent from iPhone; please forgive any typos or violations of forum rules

[JSixpack]

I wouldn't put my lump sum in the stock market, if it tanks, and it will, then you can get seriously wiped out.

No, you use a stop-loss & pay some attention to the technical indicators. You're in cash before it tanks, or your fund manager has already upped the percentage of cash, limited the losses, and is ready to play the recovery.

and when the prices fall like rocks through stop-losses, you are not on the priority list of "your" fund manager and there is no recovery for years to come (like in 2000) you can always ask the tooth fairy to hand out a few bucks for a noodle soup. another very popular alternative is to experience gravity when jumping from a balcony.

And when the USA nukes Singapore and Hong Kong like it did Hiroshima and Nagasaki in 1945? And if a giant asteroid hits Manhattan and causes the extinction of all the dinosaurs such as yourself?

Yeah, lots of things can, like, happen.

Stop-losses: not foolproof, but more likely to be blown through with a thinly-traded stock than one widely held--or just an index. I did say be watching the indicators. In fact one can wait for an uptrend, buy, then sell on the way up to guarantee a cash supply for later buying at the bottom. Sophisticated investors just love market bottoms! "Buy when there's blood in the streets, even if the blood is your own."

Mutual funds such as I cited are common pools and there isn't a "priority list." Given the record of, say, Aberdeen and its awards and the recommendations, your silly association of it with the tooth fairy tells us nothing but that you're trolling. Wanking is just so enjoyable, eh?

Rather than just hanging around sneering and trolling as you often do, why don't you make yourself useful by addressing the OP's question ("invest in Thailand") and tell her exactly what she needs to do and how to do it to have reasonable hope of good returns--risk-free, of course.

My humble advice was entirely reasonable and appropriate for the OP, a naive investor, and specific to her question. Now, nobody said anything about life savings ("my lump sum").

[jpduggan]

I would say the Thai stock market. It is both easy and cheap to get started here, much more so than in the west. Of course you shouldn't just jump into the deep water, but either paper trade for a year or so to get an understanding of how it works, what news to believe (and more importantly, what not to believe).

Stock Market is a gamble and should only be done if you can afford to lose money.

[Naam]

JSixpack, on Yesterday, 12:57 , said:

...ready to play the recovery

using the word play when it concerns investments is

self-explanatory and does not warrant detailed comments.

little boys play, grown ups invest

[fred007]

Some people invest in gold,the certificates.Learn about gold and how it goes up and down.You can make out.

Yes GOLD is the Go for me

[JSixpack]

JSixpack, on Yesterday, 12:57 , said:

...ready to play the recovery

using the word play when it concerns investments is

self-explanatory and does not warrant detailed comments.

little boys play, grown ups invest

Oooh. And still nothing responsive to the OP's request? You've purposefully missed the point: it's the OP who warrants detailed comments.

"Play" is an informal term commonly used in the (English-speaking, less encumbered by Teutonic grimness) investment community by professional (to which I make no pretense) grown ups in relation to investing in the share markets. Since you seem ignorant about the common lingo in the field, here are just a few of countless examples:

Wall Street Journal:

How to Play the Stock Market's Volatility

Telegraph Finance, quoting int'l banks:

RBS and Lloyds: Government shouldn't 'play the stock market' with taxpayer stakes

Stockmarketinvesting101:

How To Play The Stock Market And Win

Gluskin Sheff + Associates Inc. is the best way to play a recovery in the equity markets, says RBC Dominion Securities analyst Geoffrey Kwan.

You must have meant "little boys troll, grown ups seriously try to help--and all I can do is troll."

Lemme see. What other little word can you nitpick as your contribution to the thread?

Edited June 26, 2012 by JSixpack

[Naam]

today dear Newbies we learn the lesson "How to Invest in the Thai Stock Market".

there... there... don't be afraid. it's not rocket science. you buy stocks, wait till they go up and sell before they go down. and then you get ready to play the recovery. as simple as that!

but Master... what if they go down before they go up?

stocks always go up... in the long run!

ermm... Master...

yes Somchai?

Master, my Daddy bought stocks 18 years agoi in 1994 when the SET was 1,750. today we are slightly above 1,100. is that up or down?

sit down Somchai. your Daddy is a dummy. instead of playing the market he invested. serves him right!

[Litlos]

Something to think about before investing in things like Australian dollar bank interest at 5% is that at some point in the very near future the Australian dollar is probably going to depreciate. Whether this is due to government incompetence or the fact the Chinese stop buying the raw materials remains to be seen. It was reported reasonably reliably a while ago that the Aust government was aiming to get the currency worth about 1AUD= 75 cents US compared to parity today, based on previous Aust government performance it will do a reasonable overshoot and my theory is hit about 1AUD= 65 cents against the US dollar.

So you need to be careful that the 5% by the banks is not devalued by about 25% on the capital compared to say the Thai Baht due to currency movements. You need to work out where you wish to be ultimately spending the money, and ensure that relativity is maintained with that currency, plus gains if possible.

By the way if someone knows where there is a rock steady currency (vs THB), that also has investment potential for expats I will be all ears.

Cheers