Krungsri Asset Management (KSAM) expects foreign investment funds (FIFs) to continue to grow in 2024 as Thailand's gross domestic product (GDP) expands less than other economies in the region, while the volatile local bourse is without a clear growth outlook.
KSAM recommends investors opt for stocks of Asian companies with a global presence, with a focus on the Indian and Vietnamese markets.
"The global economy is still volatile due to several factors, making investing this year risky," said managing director Supaporn Leenabanchong.
"We are focused on investing in world-class companies that are stable and able to grow amidst market fluctuations, including leading luxury brands that continue to grow as the global economy slows."
As other Asian economies have higher growth rates than Thailand, particularly India and Vietnam, KSAM would focus investments on these markets. China, meanwhile, is off its radar for the time being given the prolonged crisis in the real estate sector.
KSAM wants its assets under management (AUM) to grow by 2.1% this year to 580 billion baht. The growth is in line with peers in the industry.
For the week ending Feb 9, the company had net inflows into mutual funds of around 20.9 billion baht, ranking fifth in the industry in terms of AUM, Ms Supaporn said.
KSAM projects its net inflow will mainly come from money market funds as return on investment is around 2%, still higher than deposit interest rates.
This year it is also putting emphasis on developing online investment tools to increase service efficiency and facilitate customers in mutual and provident fund businesses, while adding more sales agents. New products will be launched, including a new Thai ESG Fund and FIF funds, both of which are increasingly popular and are suitable for the current market conditions.
KSAM has come up with five themes for investors to choose for their investment this year, including bond funds which would benefit from the downtrend of United States interest rates.
The second theme is the emerging market fund, which is expected to draw inflows after the US dollar weakens. Third is the global brand equity fund which invests in high-quality stocks with low debts, high profit rates, and good cash flow.
The fourth theme is investing in stocks with outstanding positive factors, such as tech stocks, which are likely to outperform the market supported by artificial intelligence and the recovery of the semiconductor market. The last group is the Thai equity fund that focuses on potential turnaround stocks.