Investment units for the Vayupak Fund 1, projected to raise between 100 billion and 150 billion baht, will be available for purchase next month.
The cabinet has given the green light to establish the Vayupak Fund 1, a significant financial initiative aimed at revitalizing investment opportunities in Thailand’s financial landscape.
This new fund is designed to enhance the Stock Exchange of Thailand (SET), which is currently facing challenges as the worst-performing market in Asia, having experienced an 8.4% decline this year after a 15% drop last year.
Open to both general and institutional investors, the Vayupak Fund 1 will feature a 10-year investment term, ensuring a minimum return guarantee alongside a cap on maximum returns, as stated by official sources on Tuesday.
Additionally, the fund will incorporate protective mechanisms to safeguard investments.
The Ministry of Finance highlighted that Vayupak Fund 1 will be listed on the stock exchange, employing both active and passive investment strategies.
The fund’s equity investments will target companies recognized for consistent returns, long-term stability, commitment to sustainable practices, and strong corporate governance.
SET officials indicated that participating in Vayupak Fund 1 presents an advantageous opportunity, particularly as the local market’s price-to-earnings (PE) ratio is currently lower than historical averages and below that of neighboring markets.
Market analysts have expressed optimism regarding the fund’s potential to uplift the bourse, aiming to maintain the SET Index above the 1,300-point threshold, which stood at 1,297.79 at market close on Tuesday.
Analysts in the financial sector believe the banking and energy sectors may experience positive momentum, as the existing investor base for the Vayupak Fund is heavily weighted in these areas.
Current fund data indicates significant holdings in major corporations, including PTT Plc and financial institutions such as Krungthai Bank.
Experts suggest that every 10 billion baht of new liquidity could elevate the SET index by approximately 20 to 25 points, potentially stabilizing it within the 1,300 to 1,330 range.
Key sectors anticipated to benefit include energy, banking, communication, and retail.
With a focus on strong short- and medium-term fundamentals, analysts favor companies such as PTT, SCB, Bangchak Corp, Airports of Thailand, Advanced Info Service, and others.
Market analysts also believe that the launch of the new Vayupak Fund may encourage foreign investment to return to the Thai stock market, which has seen a significant net selling of shares by foreign investors amounting to 120 billion baht this year.
Investment recommendations highlight ten stocks expected to be heavily held by the Vayupak Fund, including PTT, SCB, TTB, BCP, and others, as pivotal players in the evolving market.
