Investments in long-term funds (LTFs) and retirement mutual funds (RMFs) are expected to reach 30.3 billion baht combined for the rest this year, supporting the Thai bourse's bullish outlook, says Asia Plus Securities (ASP).
November and December is the favoured period for LTF and RMF investment despite a new regulation changing the LTF holding period to seven calendar years from five years, but investors remain interested in both investment funds, said Poranee Thongyen, ASP executive vice-president.
Last year's fund inflows into LTFs and RMFs in November and December were 33.1 billion baht, down 7.2% year-on-year from 35.7 billion in 2015, said Mrs Poranee.
Investment from retail investors purchasing LTFs and RMFs in the last two months of the year usually tallies 55-60% of total investment in those funds annually, she said.
"It is expected investment in LTFs and RMFs will sustain the equity market's trading volume [for the remaining months]," said Mrs Poranee.
For this year's first half, investors poured 9.6 billion baht into 77 LTFs. It is expected that fund inflows into LTFs will be 6.45 billion baht in November and 26.4 billion in December.
The investment sum into LTFs was 58.7 billion baht in 2016.
From 2010 to 2016, average investment in LTFs in November and December comprised 11% and 45% of the total for each month, respectively. Average investment in November was 5.5 billion baht and for December was 23.4 billion.
For the past six years, retail investors have invested an average of 7.1 billion baht in LTFs in November and 11.5 billion in December.
ASP's research department expects the stock market will be an investment target for retail investors looking at LTFs including the SET100 and those stocks whose prices have an opportunity to rise in the last two months.
Selected stocks LTF investors should look for in funds include Unique Engineering and Construction (UNIQ), Bangkok Dusit Medical Services (BDMS), Workpoint Entertainment Plc (WORK), and Airports of Thailand Plc (AOT), said ASP.
