How to start a Mutual Fund for absolute beginners.

[Deacon Bell]

Say I have a small amount of cash that I want to put into a mutual fund. 100k cash.

Aberdeen get good reviews, so doing it with them.

I walk into their office with the cash and my passport.

What happens next...

[meand]

They don't get a lot of walk ins, so be advised of that. You will be asked to fill out a bunch of forms, and need your passport and anything else you can think of. They may balk if you are from the US, so keep that in mind.

For each fund you choose, there will be a separate set of forms. They wont take your cash, you will have to go down to the Bangkok Bank and put the funds in that way. There is a form she will give you indicating to the bank teller the funds are going to aberdeen that indicates which fund the money is for. Se will give you a few of these forms, also available on their website. Your mutual fund will be connected to your bank account, whether it's bangkok bank or another. So you will need a bank account. I don't believe you can just walk in and hand them money.

There will be a set of investor risk forms that is a newer Thai regulation. Don't sweat the answers on these, just fill them out quickly and accurately as you can. They are for the Thai govt and totally useless imo, but they are required.

You should inquire about setting up their internet deposits. It will take a couple of weeks but worth it.

Edited September 1, 2014 by meand

[Deacon Bell]

Thanks a lot.

If connected to my bank account I will probably connect it to my BAY 2.35%.

So I choose the fund?

How would I go about choosing one?

(I'm looking to put the money away and not see it again for 15 years or so, when it will be given to my child.)

Any simple recommendations for what fund to put it in?

[meand]

My best performing fund with them has been the small cap fund. That fund will tend to be a little riskier, right (ie you're buying into smaller companies like Big C and LPN)? I know Fletch likes the Growth fund. I like it too, but I have to say on a long term basis the fund seems like it is getting a little too big, which can hinder its performance. Fletch I'm sure will come in with good info, to give it to you straight, I think you should take his advice.... he knows what he is talking about. If you want my advice.....

I would go with Bualuang's (connected to Bangkok Bank and thus very convenient is one advantage) Top Ten account. It would be hard to go wrong either way, but I do have that one concern about the Growth fund. If you do go with aberdeen I would do growth though, because it will be the safest bet. I think Fletch will come in with good info on this however.

[Deacon Bell]

Thanks.

It would be easy for me to be bamboozled with names and terms.

Looking at this, Aberdeen Growth Fund:

http://www.aberdeen-asset.com/doc.nsf/Lit/FactsheetThailandOpenABG

The price per unit would equal 65 units for my 100k baht.

So I register with Aberdeen and choose to buy these units.

I then don't touch it for a long time (many years), and then choose to sell and take whatever cash is there (the capital and whatever returns). Say it had grown to 150k baht.

What fees would I pay and when would I pay them?

Thanks again.

Edited September 1, 2014 by Deacon Bell

[meand]

Thanks.

It would be easy for me to be bamboozled with names and terms.

Looking at this, Aberdeen Growth Fund:

http://www.aberdeen-asset.com/doc.nsf/Lit/FactsheetThailandOpenABG

The price per unit would equal 65 units for my 100k baht.

So I register with Aberdeen and choose to buy these units.

I then don't touch it for a long time (many years), and then choose to sell and take whatever cash is there (the capital and whatever returns). Say it had grown to 150k baht.

What fees would I pay and when would I pay them?

Thanks again.

Again, I'll give you my answer and wait of the onslaught Not everybody agrees on whether its best to pay the fees and let the Thai bankers manage your money, or manage the yourself and pay less in fees. That is the question.

Here is one thing I think is indisputable considering you are just starting out. You are not going to invest in stock as well as the Thais who know the markets and study them everyday. Go look at their bios on the Bualuang page. I was impressed I must say. Very well educated and bright people managing your money. Aberdeen of course is no different. But, you have to pay for their insight, right?

The reason I say all that is people are going to come in here and say "they charge too much..... blah blah". It's fine to consider what they are saying, but the truth is in a small market like we have here in Thailand, it is well well worth it to pay a knowledgeable Thai to manage your money, which is essentially what's happening.

You will have to look to get the exact figures, but you can look to pay a little under 2% a year. When you take it out in say 15 years, they will take 1%. I can't stress enough this is money well well spent, but others will say I am dead wrong Yet, if you want to empirically see if the fund managers are worth it, look at the historical graphs on the fund's monthly performance page. The history tells the story. One line is the stock the managers have picked, the other line is the SET overall. You be the judge

Edited September 1, 2014 by meand

[Deacon Bell]

Thanks very much. I would be happy to pay 2% p/a and 1% upon withdrawal, and let them manage it.

Can you point out which fund out of these would do that:

http://www.aberdeen-asset.com/aam.nsf/Thailand/fundsprices

[meand]

Pretty much all those funds will be in that range. You will have to look at the monthly sheets to get the exact numbers. The "fif" funds that invest internationally will have higher rates. The growth fund for example, is all Thailand (set), so the rates are around the average quoted above. Funds like the small cap may charge a little more because i think they require more active management. I am all invested in Thai funds, no international funds, because I am cheap and dont like the rates on those funds outside of thailand but if Thailand crashes I have less of a buffer. It's just all something to think about. Given your amount and situation though I would not have any reservation plunking it all down in that growth fund. They hold really good stocks in there, and on a 15 year time frame it is a great bet. Fletch in your other thread wants you to buy 4 funds, and your money would be spread globally, which would mean less chance to have something really bad happen. He is probably right but you will have to weigh whether you want to pay those higher fees for the exposure to other markets or not.

Edited September 1, 2014 by meand

[fletchsmile]

I think meand covers things well

I'd agree also with his comments that Aberdeen Growth has slowed in terms of outperformance and others catching up. The fund has got bigger, and less nimble. It's still a good solid basic Thai equity fund though as a core start. The small cap fund is also worth a look, and a good performer - more nimble than the Growth fund

Aberdeen have one of the widest ranges. Not always the best on everything but a good one stop shop to start. If you click on the name for each fund on the link you posted, you can then click and access the "Manager's Monthly Fund Fact sheets". These will give you some useful info to look up, eg past performance, entry fees, exit fees etc. Most have about 1.5% entry and no exit fee - where there's an exit fee you should usually find a lower entry fee

http://www.aberdeen-...and/fundsprices

eg

http://www.aberdeen-asset.co.th/doc.nsf/Lit/FactsheetThailandOpenABAPAC

http://www.aberdeen-asset.co.th/doc.nsf/Lit/FactsheetThailandOpenABEG

http://www.aberdeen-asset.co.th/doc.nsf/Lit/FactsheetThailandOpenABGEM

http://www.aberdeen-asset.co.th/doc.nsf/Lit/FactsheetThailandOpenABWOOF

http://www.aberdeen-asset.co.th/doc.nsf/Lit/FactsheetThailandOpenABSM

http://www.aberdeen-asset.com/doc.nsf/Lit/FactsheetThailandOpenAEOB

all above are reasonable funds

Stay away from their US funds they consistently underperform. Aberdeen are stronger on Emerging markets

You could also buy thru one of their distributors. I buy thru Stan Chart, but when I first started investing with Abedreen I walked in and invested direct.

I notice you mention 100k instead of 300k in your other thread. Sensible move to start off with less and get comfortable. No need to rush. The minimum for each fund is usually only 5k. Probably a good thing to spread it over a few funds rather than just one. Then you can also watch and get a feel for things. Start taking an interest in the markets too, and following them.

BTW Do you pay tax here? If you do, look at their LTF fund. Similar in style to the Growth fund, but you can get tax relief on contributions

http://www.aberdeen-asset.co.th/doc.nsf/Lit/FactsheetThailandOpenABLTF

Don't expect your money to just increase all the time. There will be times when it falls, and at the start possibly even below your original amount. Over 15 years though you shouldn't go far wrong if you pick a selection of those funds, and should certainly do better than cash.

Cheers

Fletch

[Deacon Bell]

Thanks very much to both of you, great info, just what I was looking for. It may be interesting to split the money between 3 or 4 of them for the first year or two while slowly reading up and learning about them and the whole asset management field in general.

[Deacon Bell]

Just looking at the Small Cap Fund:

This shows that this year to date it has increase by 24.5%, and since 5 years ago it has increase 278.5%?

If so, that is quite impressive.

[fletchsmile]

Yes those are very good returns. Bear in mind though that they are running from not long after the 2008 crash. So the 5 year period is buying close to the bottom. The Thai SET index lost 40%+ in 2008 when most major stock markets tanked due to the global economic crisis. The following year it was up 60%+. So if you managed to miss 2008 you did very well

Even if you included 2008 though you'd have ball-park over doubled your money in 6 years +. It highlights that equities can be risky, but over long periods provide superior returns to cash.

Some people are too scared to get into Thai equities because of the potential for a 40% crash every decade or so. They also miss the big upside years too like 60%+ in 2009 or 116% in 2003

Cheers Fletch:)

[55Jay]

Nice thread.

[meand]

Just looking at the Small Cap Fund:

This shows that this year to date it has increase by 24.5%, and since 5 years ago it has increase 278.5%?

If so, that is quite impressive.

Yep. it's as you said. The important figures there are the "Set index %" also. This is how the entire stock market is doing. In effect, that number is used to compare how good fund managers are at their jobs. Comparing the fund's numbers to that, as you can see, they outperformed the SET remarkably well. It is really saying something too. In the US for example, fund managers have a hard time outperforming the entire market, because it is so large and complex (simplified explanation). In short, there is no predicting the future, but what those numbers tell you is the people you are paying those percentage points to are doing their jobs

On a sour note, the set dropped down to almost 1200 not too long ago deacon. It has since had quite a run. That's why I was saying maybe it would be best to open a mutual fund now, put a little in, and put much in that krungsri account and "average" or add slowly to the fund over a year or two. That would be much less risky than putting it all in at once.

[cheeryble]

Fletch am I right in thinking that if you go through an introducer the entry payment....or part....goes to them?

(This certainly hapoens with "financial advisers")

Consequently if you go direct to say Aberdeen is it possible to avoid it?

Secondly Deacon do be aware of survivorship bias.

Ie companies with good results will be the ones you happen to see.

If Aberdeen had performed horribly or disappeared you likely would never have learned of them.

You have to judge factors including consistency and years of performance to decide whether they are not just there by chance.

(This has shown itself very true with some hedge funds tanking)

Not saying this applies or doesn't apply to Aberdeen.

Sent from my iPad using ThaiVisa app

Edited September 2, 2014 by cheeryble

[Deacon Bell]

If I was to split 50/50 between asset management companies. 100k with Aberdeen and 100k with another. Which Thai Asset Management company would people recommend?

[meand]

If I was to split 50/50 between asset management companies. 100k with Aberdeen and 100k with another. Which Thai Asset Management company would people recommend?

I think it is a great idea to go with 2 different companies. I would definitely go with bualuang, which can be found at the bangkok bank pages under mutual funds. I would mainly look at their equity funds.

http://www.bangkokbank.com/BangkokBank/PersonalBanking/BuildYourWealth/MutualFunds/EquityFund/Pages/default.aspx

[fletchsmile]

Fletch am I right in thinking that if you go through an introducer the entry payment....or part....goes to them?

(This certainly hapoens with "financial advisers")

Consequently if you go direct to say Aberdeen is it possible to avoid it?

......

Sent from my iPad using ThaiVisa app

In some countries that's the case, and then there are all sorts of variations on that, where sometimes going direct is better, and sometimes thru a broker.

For Aberdeen in Thailand though if you buy direct from them or one of their distributors listed on their website, the initial charge to you is usually still the same and usually around 1 - 1.5%. Same thing with the annual management charge the distributor will get a trailer fee. The only difference is the fees charged get split between the distributor and the funds management house according to their agreements. So go direct you pay 1.5% and Aberdeen keep it. Go thru a distributor you pay 1.5% and Aberdeen share it with the distributor.

Cheers

Fletch

Edited September 2, 2014 by fletchsmile

[fletchsmile]

If I was to split 50/50 between asset management companies. 100k with Aberdeen and 100k with another. Which Thai Asset Management company would people recommend?

This is a key reason I buy thru my bank these days. When I first started buying funds in Thailand I went direct to Aberdeen. Now that I buy thru my bank I have funds from: UOB asset management, TMB asset management, KT Asset Management, Krungrsi asset management, MFC, Tisco etc and put them all under the same umbrella. An advantage of this model is that my relationship manager (RM) at the bank will suggest funds from time to time, and they are not tied to a single asset management house.

TMBAM and KTAM have added quite a few feeder funds over the last couple of years, which basically feed into well known international funds.

Bangkok Bank/Bualuang, SCB and some of the other banks have some good funds, but can be more limited in their range as Bangkok Bank/ Bualuang want to push their own funds. This goes back in party to Cheeryble's post above. If they sell their own fund within their own group, then all the fees are kept within the group. Hence while some good funds they have a narrower range and are less likely to offer you a best of best fund, just the best they have in their limited range. Stan Chart who I buy thru have no funds of their own so offer a wider range and are more likely to recommend a better performer vs recommend just because they're selling a related company product.

A downside with Stan Chart is I can't buy on line, and their system isn't great, just functional. The upside is one of the widest range / choices of funds in the Thai market, and if you build your funds / total assets with them to 3mio+ you get priority banking and your own dedicated relationship manager. My RM is excellent and has got used to our quirks. She knows us well as a family, can help when I'm out of the country, or with general admin headaches, and I know if something happened to me (eg I get hit by a tuk tuk) the family is in reasonable hands. Other banks also offer a priority service.

Cheers

Fletch

[Deacon Bell]

I have bank accounts with both K-Bank and BAY.

Would I be able to buy into the same funds (Aberdeen Short Cap Fund) through my branch of BAY.

For example, if I go in and say that I want to transfer or move 100k from my BAY Mee Tae Dai account to Aberdeen's Short Cap Fund, can they do it for me there?

Edited September 2, 2014 by Deacon Bell

[fletchsmile]

I have bank accounts with both K-Bank and BAY.

Would I be able to buy into the same funds (Aberdeen Short Cap Fund) through my branch of BAY.

For example, if I go in and say that I want to transfer or move 100k from my BAY Mee Tae Dai account to Aberdeen's Short Cap Fund, can they do it for me there?

Both BAY/Krungsri and Kasikorn/K-Bank are distributors of Aberdeen funds so you should be able to buy thru either:

http://www.aberdeen-asset.co.th/aam.nsf/Thailand/distributorsbanks

First time round it's not quite as simple as transferring 100k. There may be a bit of a Thai paper chase - but shouldn't take more than 30 mins - 1 hour set up if you have the docs "meand" mentioned. You will need to complete account opening forms, copies of your passport/IDs needed etc + fund purchase form + money transfer form of some description to move the 100k. I'm not exactly sure of their admin procedures to be honest but they'll be similar and either bank will give you all you need to fill in.

Both also have their own range of funds - many of which are feeder funds into better known international funds. They should both have their own online platforms for buying their own range of funds, but not sure if that extends to buying Aberdeen's funds as well or not or if's it's just manual paper forms.

KBank are also in the process of launching a property REIT and both Krungrsri and K-Bank offer a gold fund. So if you were looking to spread your money, you would be able to get access to the main assets classes of: equities (foreign + international), bonds/fixed income, gold, property and cash should you want to diversify.

{BTW I read you had some interest in gold on the other thread. This is one way I get exposure in Thailand for our family. We have TMB gold, MFC gold and Krungsri Gold RMF (retirement fund) mutual funds between us}. I wouldn't want more than 5% -10% max in gold though if looking 15 years ahead and I prefer equities for that time frame!

Cheers

Fletch

[Deacon Bell]

Perfect info, thanks.

[mccw]

Hi

Do these funds pay out any dividends or it's all just capital gains targeted?

Thanks

I think meand covers things well

I'd agree also with his comments that Aberdeen Growth has slowed in terms of outperformance and others catching up. The fund has got bigger, and less nimble. It's still a good solid basic Thai equity fund though as a core start. The small cap fund is also worth a look, and a good performer - more nimble than the Growth fund

Aberdeen have one of the widest ranges. Not always the best on everything but a good one stop shop to start. If you click on the name for each fund on the link you posted, you can then click and access the "Manager's Monthly Fund Fact sheets". These will give you some useful info to look up, eg past performance, entry fees, exit fees etc. Most have about 1.5% entry and no exit fee - where there's an exit fee you should usually find a lower entry fee

http://www.aberdeen-...and/fundsprices

eg

http://www.aberdeen-asset.co.th/doc.nsf/Lit/FactsheetThailandOpenABAPAC

http://www.aberdeen-asset.co.th/doc.nsf/Lit/FactsheetThailandOpenABEG

http://www.aberdeen-asset.co.th/doc.nsf/Lit/FactsheetThailandOpenABGEM

http://www.aberdeen-asset.co.th/doc.nsf/Lit/FactsheetThailandOpenABWOOF

http://www.aberdeen-asset.co.th/doc.nsf/Lit/FactsheetThailandOpenABSM

http://www.aberdeen-asset.com/doc.nsf/Lit/FactsheetThailandOpenAEOB

all above are reasonable funds

Stay away from their US funds they consistently underperform. Aberdeen are stronger on Emerging markets

You could also buy thru one of their distributors. I buy thru Stan Chart, but when I first started investing with Abedreen I walked in and invested direct.

I notice you mention 100k instead of 300k in your other thread. Sensible move to start off with less and get comfortable. No need to rush. The minimum for each fund is usually only 5k. Probably a good thing to spread it over a few funds rather than just one. Then you can also watch and get a feel for things. Start taking an interest in the markets too, and following them.

BTW Do you pay tax here? If you do, look at their LTF fund. Similar in style to the Growth fund, but you can get tax relief on contributions

http://www.aberdeen-asset.co.th/doc.nsf/Lit/FactsheetThailandOpenABLTF

Don't expect your money to just increase all the time. There will be times when it falls, and at the start possibly even below your original amount. Over 15 years though you shouldn't go far wrong if you pick a selection of those funds, and should certainly do better than cash.

Cheers

Fletch

[Luang]

No disrepect here, but have you sat down and really srutinised the amount you would be handing over to these people as your hard earned cash accrues? It will be a serious amount over 15 yrs! 2% annually in management fees alone. And in high-risk emerging markets.

You might want to browse a little through trading in non-managed index investing (ETF's) first before you commit.

Edited September 3, 2014 by Luang

[fletchsmile]

No disrepect here, but have you sat down and really srutinised the amount you would be handing over to these people as your hard earned cash accrues? It will be a serious amount over 15 yrs! 2% annually in management fees alone. And in high-risk emerging markets.

You might want to browse a little through trading in non-managed index investing (ETF's) first before you commit.

No disrespect either but do you have an ETF in mind that has beaten either of the two Thai Funds mentioned since inception or over 10 years plus. Both have significantly outperfomed SET TRI over longer periods. They dwarf the small extra in fees in terms of out performance

Worth bearing in mind ETFs also aren't as easy to buy in Thailand as they are in some other countries with a more limited choice. If looking at buying from outside Thailand (which OP wasn't) and looking at developed markets, say US equities then US ETFs might be the way to go... You need to be careful with the marketing that has been done by low cost ETFs/ trackers. In some cases low cost is a better choice in others out performance of active funds way out perform the costs.

Horses for courses. So while the generic point might have some validity, it doesn't go far without some specific ETF funds OP could buy in Thailand for a couple of hundred thousand baht. Always good to see alternatives though and look as you say

Cheers

Fletch

[fletchsmile]

Hi

Do these funds pay out any dividends or it's all just capital gains targeted?

Thanks

MCCW

All the ones there were accumulation units so no divs. Main reasons for that being:

- As OP was looking 15 years time he's looking for overall return

- Probably doesn't want to bother with the admin of reinvesting the divs given that the intention is to build wealth rather than create income streams

- Dividend paying funds can put you at a bit of a tax disadvantage in Thailand. There's no capital gains on the retail funds mentioned with accumulation units. If you did select dividend paying funds the dividends would be taxed at either a flat 10% or your marginal rate of tax (0% - 35%). So an identical fund paying divs to one that doesn't will always give you a lower total return or at most the same return if zero tax

BTW If you are interested in div paying funds on Thai equities but in Thailand, there are a few ideas on post #365 of this thread

http://www.thaivisa.com/forum/topic/640408-set-index-and-thai-mutual-funds/page-15

BTW2 For dividend paying/ incoming yielding investments bought outside Thailand: there's a few ideas and suggestions on post #366

http://www.thaivisa.com/forum/topic/640408-set-index-and-thai-mutual-funds/page-15

Includes some Singapore REITs, ETFs, fixed income ETF, couple of individual shares

Not saying they're suitable for you or anyone (except me ) But a few ideas

Cheers

Fletch

[Luang]

No disrepect here, but have you sat down and really srutinised the amount you would be handing over to these people as your hard earned cash accrues? It will be a serious amount over 15 yrs! 2% annually in management fees alone. And in high-risk emerging markets.

You might want to browse a little through trading in non-managed index investing (ETF's) first before you commit.

No disrespect either but do you have an ETF in mind that has beaten either of the two Thai Funds mentioned since inception or over 10 years plus. Both have significantly outperfomed SET TRI over longer periods. They dwarf the small extra in fees in terms of out performance

Worth bearing in mind ETFs also aren't as easy to buy in Thailand as they are in some other countries with a more limited choice. If looking at buying from outside Thailand (which OP wasn't) and looking at developed markets, say US equities then US ETFs might be the way to go... You need to be careful with the marketing that has been done by low cost ETFs/ trackers. In some cases low cost is a better choice in others out performance of active funds way out perform the costs.

Horses for courses. So while the generic point might have some validity, it doesn't go far without some specific ETF funds OP could buy in Thailand for a couple of hundred thousand baht. Always good to see alternatives though and look as you say

Cheers

Fletch

I thought they meant 100,000 dollars or pounds?!

I wouldn't for a moment suggest I knew enough to name specific ETF's that have beaten the one's you mentioned. What I do know though, is that the majority of actively managed funds do not outperform index tracked funds over the long term and I just wanted to suggest the OP might want to do some more research as you rightly agreed. I also agree that Aberdeen have some of the better managed funds - for now!

Yes, they may well get higher returns but they will also be at much higher risk and with most certainly involve drastically higher fees. Again, as you say this may well be easily offset with the returns?

Regarding buying in Thailand: they could simply open a brokerage account in Singapore(Saxo) or Luxembourg(TD) for example and trade on any markets they like, preferably with a home country bias element in the portfolio. They could start a simple passive account with an all-world ETF , home country ETF (or Thai if preferred) and some bonds and simply keep reinvesting periodically.

Here's what some folks who know a shed load more than me say on the matter:

• “The most efficient way to diversify a stock portfolio is with a low fee index fund”

–Paul Samuelson. the first American to win a Nobel prize in Economics.

• “The public would be better off in an index fund”

–Peter Lynch

• “[A] significant portion of one’s assets in equities should be comprised of index funds.” “Unless you are lucky, or extremely skillful in the selection of managers, you’re going to have a much better experience going with the index fund”

–Bill Miller, Legg Mason Value Trust fund manager

The deadliest sin of all is the high cost of owning some mutual funds. What might seem to be low fees, expressed in tenths of 1 percent, can easily cost an investor tens of thousands of dollars over a lifetime”

- Arthur Levitt, former chairman of the American Stock Exchange and the U.S. Securities and Exchange Commission?

• “A miniscule 4 percent of funds produce market-beating [index beating] after-tax results with a scant 0.6% (annual) margin of gain. The 96% of funds that fail to meet or beat the Vanguard 500 Index Fund lose by a wealth-destroying margin of 4.8% per annum”

–David Swenson, Chief Investment officer of the Yale University Endowment Fund

• “Santa Claus and the Easter Bunny should take a few pointers from the mutual fund industry. All three are trying to pull off elaborate hoaxes”

–Jonathan Clements, The Wall Street Journal, September 15, 2002

• “Before you jump into [actively managed mutual funds] consider the cost: typically 2 percent to 3 percent of your assets per year….You are simply giving your money away”

–Jane Bryant Quinn, Washingtonpost.com, May 19, 1996

• “Your chances of selecting the top performing funds of the future on the basis of their returns in the past are about as high as the odds that Bigfoot and the Abominable Snowman will both show up in pink ballet slippers at your next cocktail party. In other words, your chances are not zero–but they’re pretty close”

–Jason Zweig, author of the revised edition of The Intelligent Investor, pg. 245

• “Whenever we lay out the math, people are naturally skeptical. It seems too good to be true. How can the mutual fund industry get away with charging us so much for so little? Doesn’t all that expensive professional management accomplsih something? Sadly, no.”

–Ian McGugan–Editor of MoneySense magazine

At the end of the day though......up to you!!

[fletchsmile]

What I do know though, is that the majority of actively managed funds do not outperform index tracked funds over the long term ...

The answer to that one is easy... dont buy the majority of actively managed funds.

Cheers Fletch:)

[fletchsmile]

Btw did you notice the common theme that all the quotes are US or developed market centric.

If you dig around there s some decent alternative perspectives of why this may not apply in EMs or markets with high levels of government impact or other markets where we are not talking "perfect markets". Not as easy to find that tho.

Agree with some of the points. Tho

Some of the offshore options you mention are decent.

For OP that would involve bank transfer costs and currency conversion costs if starting with THB.

Then also the question of convenience if there s a problem. Also if anything happens to OP the cost and hassle of his Thai dependents retrieving the money from outside Thailand while they live here. Much easier for them to walk into a branch of somewhere in Bkk and talk Thai...

Edited September 3, 2014 by fletchsmile

[ExpatJ]

Aberdeen fees are high relative to what you can buy in the US for the same Asia coverage- e.g. Aberdeen asia small caps has a 1.7 expense ratio, Vanguard has average of 0.15 expense ratios.

What does this mean in English? For $100,000 over a 10 year period at say- 6% returns (unlikely but just for comparison) - you would get at least $24,000 return more on Vanguard compared to Aberdeen because of the higher Aberdeen fees.

Try and open an online account (etrade, vanguard etc) in your home country and then buy asia/thai funds through them- over 15 years you will make a lot more money given the fee differences.