Equity Funds (Non-Distribution)
The main objective of an equity growth funds is to seek maximum capital gains from a portfolio of high growth stocks rather than receiving income from dividends. Current income is not a significant factor and the fund is fully invested most of the time. Dividend pay-out is zero because all income is reinvested back into the fund. They are suitable for individual investors looking for long term capital growth and most important of all, capital gain is tax-free.
Equity Funds (Distribution)
The primary aim is to combine long-term capital growth with a steady stream of dividend income. These funds invest mainly in the common stock of companies that have had increasing share value as well as a solid record of paying dividend. Pay-out ratio varies between 50% to 100% and they are extremely popular with investors looking for above average regular income stream.
Split - Capital Funds
Split capital fund is a 'hybrid' of two classes of units : Capital and Income. Holders of income units receive all or most of the income earned by the fund plus a pre - determined capital value on liquidation. Holders of capital units, on the other hand, receive little or no income throughout the life of the fund but are entitled to all the capital gains remaining after repayment of the income units.
Balanced Funds
Balanced funds are based on the principle that stock prices and interest rates move in opposite directions. Generally, these funds aim to conserve initial principal, pay current income and promote long term capital growth. Balanced funds have a portfolio mix of fixed income instruments and common stocks; the mixture of which may be a 50 : 50 split but there are differences among the funds. Balanced funds are suitable for conservative investors who seek the best of both worlds i.e. long-term growth with steady income.
Umbrella Funds
Umbrella funds comprise a number of sub-funds which are invested in a wide spread of sectors. Each sub-fund is an independent unit and is separately managed with its own investment objective. In this way investors are offered a wide range of investment opportunities together with a simple method of switching from one sub-fund to another.
Fixed Income Funds
As the name suggested, fixed income funds only invest in fixed debt instruments such as Bank Deposits (CDs/NCDs), Promissory Notes (P/Ns), Banker's Acceptances, Commercial Papers and Debentures. The maturities of this instrument vary between six months to several years. These funds are low risk and suitable for investors seeking above average yield on their money.
Money Market Funds
Like fixed income funds, money market or cash funds invest in 'short term' (less than one-year maturity) money market instruments. Investors use money market funds just like ordinary bank accounts. Although not yet available in Thailand but money markets funds with ATM Card and chequebook facilities may be offered in the near future.
Specialist Funds
The term specialist funds refers to the specialized investment areas or instocks of businesses that are somewhat out of the mainstream, such as pre-listed companies, new technology, precious metals, commodities, derivatives, fledging companies or special situations. Some may invest only in specific provinces, regions or single country. Therefore, investor should be aware that specialist funds will have a greater risk/reward profile than funds in broader categories.

back to top