Investing As Little As 50,000 Tb In Thailand's Set

[blossombkk]

Hi, I'm a cautious person when it comes to money investments, and would like to start investing in the Thai stock market as low as 50,000 tb, and then work my way up. I hear that this is impossible you have to invest at least 1 million tb in order to start investing.

Is there a possibility somewhere of only 50,000 tb?

Thanks for any advice

Blossom

[jamesthailand]

You have to buy a minimum of 100 shares at a time, unless the price of the shares has been over 500 baht for 6 months, in which case the minimum is 50 shares.

If you want a diversified portfolio (and if you're cautious you should), 50,000 will constrain your choice of shares a bit. You might want to consider TDEX: it's a exchange-traded fund tracking the SET50 index. This would allow you to get diversified exposure to the SET within your 50,000 baht limit. The management fee, at 0.42%, is low compared to most Thai mutual funds.

[foolforlove]

Kasikorn Bank has a large range of mutual finds with different levels of risk, diversity, and objectives.

I have been very satisfied with my investments there.

[yoshiwara]

Certainly insufficient for a portfolio. Maybe shares of one company. Not enough potential bounce for any trading so should be a long term punt. ie 3+ years.

If you want to test your expertise in the market why not just set up a shadow portfolio on google finance or yahoo finance and see how you go from there?

[usernamex]

@jamesthailand - do you need a stock broker to buy the TDEX (or other ETFs) or can you do it through a bank? Thanks!

[blossombkk]

I can do it through the bank, but to my understanding, banks are reluctant to do it and direct you to their securities.

[blossombkk]

In case of a broker, can I invest 50,000 tb only?

[fletchsmile]

As you're starting out and want to invest in the Thai market, I'd suggest unit trusts/ mutual funds. Minimum investment is usually THB 5 - 10k. Your amount is not too small for individual stocks, but this would be high risk as you don't have much money to diversify across a reasonable amount of stocks, so unit trusts are a more logical choice.

Aberdeen Growth is a good solid fund that has outperformed the SET (and hence tracker funds or ETFs) in most years since its launch. I've held it for about 14 years, with gains of 800%+ and 20% pa. The Thai stock market can be volatile though. The best year since I've held this fund was 2003 up just over 100%, and the worst was 2008 down just over 40%. You should be looking at a minimum of 3-5 years time horizon

http://www.aberdeen-...ThailandOpenABG

You can buy direct thru Aberdeen or thru some of the banks. When buying unit trusts/mutual funds thru banks bear in mind many will point you in the direction of their affiliated fund management arms, whereas the foreign banks that don't have fund management arms can help pick from the best of breed.

BTW Aberdeen's Global Emerging Growth Fund and Asia Pacific Equity fund are also worth a look. Although not just Thai, they have some Thai exposure and give you more diversification throughout the region and other markets.

Edited December 23, 2012 by fletchsmile

[tdm]

In case of a broker, can I invest 50,000 tb only?

Blossom,

you can trade the set stocks with ktzimico with less than 50000 in the account.

[jingjoe8]

As you're starting out and want to invest in the Thai market, I'd suggest unit trusts/ mutual funds. Minimum investment is usually THB 5 - 10k. Your amount is not too small for individual stocks, but this would be high risk as you don't have much money to diversify across a reasonable amount of stocks, so unit trusts are a more logical choice.

Aberdeen Growth is a good solid fund that has outperformed the SET (and hence tracker funds or ETFs) in most years since its launch. I've held it for about 14 years, with gains of 800%+ and 20% pa. The Thai stock market can be volatile though. The best year since I've held this fund was 2003 up just over 100%, and the worst was 2008 down just over 40%. You should be looking at a minimum of 3-5 years time horizon

http://www.aberdeen-...ThailandOpenABG

You can buy direct thru Aberdeen or thru some of the banks. When buying unit trusts/mutual funds thru banks bear in mind many will point you in the direction of their affiliated fund management arms, whereas the foreign banks that don't have fund management arms can help pick from the best of breed.

BTW Aberdeen's Global Emerging Growth Fund and Asia Pacific Equity fund are also worth a look. Although not just Thai, they have some Thai exposure and give you more diversification throughout the region and other markets.

I notice all dividends are reinvested,do you pay tax in thailand when you sell out?

What is the rate if tax paid?

[fletchsmile]

As you're starting out and want to invest in the Thai market, I'd suggest unit trusts/ mutual funds. Minimum investment is usually THB 5 - 10k. Your amount is not too small for individual stocks, but this would be high risk as you don't have much money to diversify across a reasonable amount of stocks, so unit trusts are a more logical choice.

Aberdeen Growth is a good solid fund that has outperformed the SET (and hence tracker funds or ETFs) in most years since its launch. I've held it for about 14 years, with gains of 800%+ and 20% pa. The Thai stock market can be volatile though. The best year since I've held this fund was 2003 up just over 100%, and the worst was 2008 down just over 40%. You should be looking at a minimum of 3-5 years time horizon

http://www.aberdeen-...ThailandOpenABG

You can buy direct thru Aberdeen or thru some of the banks. When buying unit trusts/mutual funds thru banks bear in mind many will point you in the direction of their affiliated fund management arms, whereas the foreign banks that don't have fund management arms can help pick from the best of breed.

BTW Aberdeen's Global Emerging Growth Fund and Asia Pacific Equity fund are also worth a look. Although not just Thai, they have some Thai exposure and give you more diversification throughout the region and other markets.

I notice all dividends are reinvested,do you pay tax in thailand when you sell out?

What is the rate if tax paid?

That's can be an important point for some people in Thailand.

I usually choose funds without dividends in Thailand. There is no capital gains tax on unit trusts/ mutual funds in Thailand, nor any income tax on sale of units, if you pick a fund which doesn't pay a dividend. If you want some "income", then just sell a few units instead.

On the other hand if the fund pays a dividend you can elect for withholding tax to be deducted at 10% on dividends and then have nothing further to pay. Or you can elect to have the dividend to be paid without WHT deducted. If the latter case you will be liable for tax at your marginal rate and the dividend should be included on your income tax return. This could be between 0% - 37% depending on your tax rate. So I prefer to keep in simple and avoid anything to do with paying tax in Thailand.

Edited December 24, 2012 by fletchsmile

[jingjoe8]

1. Thanks for the info, i am now a non resident of oz,one benefit is i don't get taxed in oz on overseas investments,i only pay the appropriate country taxes.So if there is no capital gains tax on these investments it will be well worth looking into