Talking about popular investments Most of the people will talk about stocks. Or fund first Maybe because both investments are easy to access, just open an account, deposit money, buy it immediately.
But since people talk about the advantages of stocks a lot Both high yields, beautiful dividends, there is a Success Story of many investors who got rich from stocks from a young age. (But a lot of unsuccessful people as well)
This time, I would like to share in the fund’s corner that there are actually a number of things that investing in the stock market cannot do. But mutual funds can do it. Many things are for the convenience of investors, and here are four things that “funds” do better than “stocks”.
1. Have a professional to take care of them.
The first clear story That is, every mutual fund has a professional to take care and manage it. As for the stock market, we have to choose our own stocks and have to monitor our own timing to invest.
Who is the professional who come from? Professionals who manage mutual funds are “Fund Manager” who will become the fund manager Must pass the CFA (Chartered Financial Analyst) or CISA (Certified Investment & Securities Analyst) exam, which is a qualification that measures investment analysis knowledge. Must read books from time to time Before passing the exam In addition to the knowledge test A person who will be a fund manager must have at least 2 years of experience in investing in securities in order to manage the fund for us.
So what does the fund manager do? Do everything If it is a stock fund Must select good quality stocks into the portfolio And must be purchased at the right time, a Company Visit is required to discuss and collect information from the executives in person to make sure that it is a company that is really worth investing in. If it is a bond fund Must select good quality debt instruments Low chance of default on debt And take good care of the liquidity because the liquidity is lower than stocks If there is a foreign investment, it is also necessary to look at currency fluctuations.
For people who do not want to be an investment expert but want to invest Mutual funds are also a good choice because we have experts to take care of your investment. And the need for fund managers to pass the exam Through the supervision of the SEC, it is a guarantee that our money is taken care of by skilled people. And is definitely transparent
Suppose we want to invest in technology stocks. Which one should we choose? In what proportion Suppose we want to invest in SET50 as well as indices, how do you have to go buy all of them?
You can actually invest in the stock market yourself. (May be a bit tiring), but diversification is a matter that mutual funds are much easier to do, for example, if we are interested in investing in indices.
Because we think that the index will grow in accordance with the economy in the long run. Indices that do not grow are bankrupt countries. If we are interested in SET50, we do not have to buy one by one in the stock market. Just by buying investment units from the funds listed in SET50, we are like owning stocks in that index.
Investing in the industry, for example, if we look at that technology stocks have grown well. Just buy mutual funds that invest in technology stocks. We will immediately invest in outstanding stocks in the group. Now we don’t have to risk our luck on which stocks will go up. Because we all mao zedong To have some losses But if there is a strong rise Will be able to compensate and push the return of the pile to be positive. (Similar principles Invest in indices)
3. All assets can be invested
I think this is the most prominent point of any mutual fund. Because mutual funds allow us to invest in all assets around the world. While in the Thai stock market, we can only invest in Thai stocks. If that year Thai stocks do not grow, they will seep (except anyone who is skilled can short the stocks or speculate down on the TFEX market).
Assets that we can invest through mutual funds. Such as Thai stocks, foreign stocks Government bonds, debt, gold, real estate, oil, which is the advantage here is that we can invest in every moment. If at this time the Thai stock market is not interesting. Moved to invest in the US stock market Or the Chinese stock market instead. If we focus on long-term investment It can bring funds into various assets. Let’s set up an Asset Allocation portfolio to diversify risks and make long-term returns consistently positive.
4. Can be tax deductible
The last thing that mutual funds can do, but stocks can’t. Is about tax deduction SSF and RMF are tax deductible according to the law. And can reduce a lot as well (Up to 500,000 baht reduction), but must study the conditions of the tax deduction carefully before investing. Because both SSF and RMF funds have already purchased and cannot be withdrawn. Because there is a condition of the period of holding
But if you buy it for a tax deduction only, it’s a shame because SSF and RMF are like general funds that have a policy to invest in various assets. Both at home and abroad While we have reduced taxes If we choose a good fund We might also get some rewards back.