Foreign Investment Fund in Thailand

Abstract

This research paper examines the performance of foreign investment funds (FIF) in Thailand from January 1st, 2015, to December 31st, 2019. The FIF funds, totaling 31, were categorized into two groups based on their dividend policies. The study employed risk analysis and rolling returns, as well as performance evaluation methods such as CAPM, Jensen's Measure, Treynor-Black, or Appraisal Ratio (AR). The findings indicate that, on average, the FIF funds yielded a 4.49 percent annual return over the study period. Among them, 17 funds were identified as defensive stocks with beta (β) ranging from 0 to 1. Additionally, 26 funds generated returns exceeding the cost of investing, except for five funds: T-GlobalValue, KF-GBLVAL, T-GlobalEQRMF, ONE-GLOBALEQ, and KF-SMCAPD. For investors seeking high returns and are willing to tolerate high risks, Group 1 mutual funds and FIFEQ mutual funds without dividend policies are recommended. Furthermore, investors who believe in the efficiency of most securities should consider using the Treynor-Black Model or Appraisal Ratio (AR). Specifically, funds such as K-GLOBE, PRINCIPAL GEF-A, TMBGQGRMF, UGD, and UGSE offer potentially higher returns as their securities are priced lower than their expected value (Underpriced), indicating a greater investment reward compared to unsystematic risk.