Eastspring Asset Management (Thailand) recommends investors maintain their focus on portfolio diversification in the second half as positive investment opportunities arise, suggesting the most attractive areas to invest in are US tech stocks and the Indian stock market.
Chief investment officer Yingyong Chiaravutthi said Eastspring believes the equity market will remain attractive in the latter half of the year, particularly US equities. In Asia, the Indian equity market is expected to post outstanding growth.
The US bond sector is expected to generate attractive returns as the US Federal Reserve is likely to start cutting interest rates in the fourth quarter.
While the US economy remains robust overall, growth is decelerating marginally due to high interest rates. However, strong earnings and sales growth continue to drive performance relative to other global markets, he noted.
In Asia, India stands out with its robust economic growth, driven by election results and policy implementation.
"As fixed income instruments become more attractive, we expect the Fed may cut the policy rate 1-2 times this year, which will have a positive impact on the bond market," Mr Yingyong said.
"While the US election and geopolitical risks may create temporary volatility, we see these as opportunities for long-term investment," he said.
Chief executive Darabusp Pabhapote said amid the ongoing challenges in terms of geopolitics and economic recovery, both of which contributed to market volatility, Eastspring recommends portfolio diversification for investors to seize investment opportunities while mitigating risks.
Eastspring has been launching product solutions catering to both domestic and international investment opportunities.
Currently, the company excels in managing foreign investment funds (FIFs), holding the No.1 market share among fixed-income FIFs at 19% and No.2 for equity FIFs, with a 13% share, according to data from the Association of Investment Management Companies as of June 2024.
Eastspring's long-term strategy focuses on protecting and growing investors' wealth, ensuring financial stability to support retirement, she said.
"With a diverse range of investment products, offering more than 30 policies, and ongoing service enhancement, Eastspring's provident fund services has seen continuous growth, serving 1,949 companies with 168,115 members," said Ms Darabusp.
The company's assets under management in the provident fund business stood at 61.6 billion baht as of May 31, she added.