Tisco Asset Management recommends Thai equity mutual funds related to the domestic economy and tourism as well as Chinese equities, US technology and dividend stocks, and US bonds for the second half of this year.
Saharat Chudsuwan, deputy managing director of Tisco Asset, said the domestic and global investment environment is highly volatile because of the possibility of a US interest rate hike, a global or US economic recession, and domestic political factors affecting the mutual fund industry.
However, he said assets under management (AUM) for mutual funds and private funds at Tisco Asset continue to grow because of the issuance of new funds that meet the needs of investors, including an emphasis on trigger funds.
Fund valuations also increased this year, especially global stock funds that declined in past years, said Mr Saharat.
As of May 31, Tisco Asset had 160 mutual funds under management, including 91 open-end funds, with AUM worth 54.7 billion baht, up from 53.7 billion at the end of 2022.
The value of AUM for private funds was 72.8 billion baht, marginally higher than the 72.7 billion recorded at the end of 2022.
He said there is a positive outlook for Thai stocks in the second half of this year, recommending funds with a policy of investing in large-cap stocks because once the economy recovers, this sector should rebound faster than others. Investors should also focus on industries that benefit from the domestic economy and tourism recovery, said Mr Saharat.
As for global investment, the brokerage recommends Chinese, US technology and dividend stock mutual funds, as well as US bond funds.
Supongvorn Mianpoka, head of asset management for investment at Tisco Asset, forecasts the Stock Exchange of Thailand (SET) index to have a target of 1,600 points in the second half of the year, supported by low inflation in the country and a resurgent tourism industry, enabling economic growth of 3.3%.
Internal factors to monitor include the vote to select the next prime minister and the policies of the new government. In addition, the profits of SET-listed companies would be a factor affecting foreign investment flows, he said.
The company recommends investment in businesses that benefit from the domestic economy and tourism, such as hospitals, retail and tourism, as well as shares that have dropped sharply since the beginning of the year because of negative factors, such as petrochemical firms and manufacturers of electronic parts.
In terms of the external factors investors should monitor, the Federal Reserve may raise interest rates again at its meeting on June 13-14, which would cause the stock market to decline in the short term. This represents an opportunity to gradually invest in foreign stocks to generate good returns, especially in low-risk industries such as healthcare, while prices are reasonable for growth dividend stocks, said Mr Supongvorn.
Large technology stocks in the US are still attractive because of their strong performance and innovations in the field of artificial intelligence. Emerging market stocks should become more attractive in the second half, according to the brokerage, while the outlook for the Chinese stock market is positive given their valuation.