The Treasury Department is investing $150 billion into the Wayupak Mutual Fund, hoping to spur a stock market recovery with a minimum holding of 5,000 baht, starting in September.

Today's press release (August 13, 2024) from the Ministry of Finance. An update on the progress of fundraising through Vayupak Fund 1, as the Ministry of Finance prepares to offer A-type investment units worth 100,000 to 150,000 million baht to the general investor. It will be listed on the Stock Exchange of Thailand in September to increase people's savings options. And restore the investment atmosphere amid the downward trend of the Thai stock market.

Mr. Pichai Choonhavajira, Deputy Prime Minister and Minister of Finance, explained the origin and purpose of raising funds through the Vayupak Fund this time. The situation of the Thai capital market has been very volatile in the past. This is due to the outflow of foreign capital from the stock exchange. From various uncertain factors such as fluctuations in the global financial market and household debt problems within the country, etc. In the past five years, it has been shown that foreign investors are net sellers in the Thai stock market. The total value is more than 530 billion baht, while the trading value of the stock exchange including the value of raising funds in the stock and debt markets, the rate has slowed down. It reflects the overall picture of the economy unable to fully recover. However, citizens and institutional investors within the country still have excess liquidity and are looking for investments that can provide good returns. It has long-term stability

Currently, the net asset value of Vayupak Mutual Fund 1 is more than 300,000 million baht, up about 15 percent since the fund’s transformation in 2013, with most of its investments in publicly listed equity instruments. Some invest in short-term debt instruments. Mr. Pichai added that in the past, the Ministry of Finance received more than 40,000 million baht in dividends from the Vayupak Mutual Fund. The fund is managed by Krung Thai Asset Management Public Company Limited and MFC Asset Management Public Company Limited, which – Ministry of Finance There will be a new adjustment to the securities portfolio under Vayupak Fund. Making investments more suitable for investment objectives

1. Type A investment unit offer value – about 100,000 – 150,000 million baht.

For general investors, allocate shares on a small quantity basis first with a minimum investment of 5,000 baht per person.

2. The initial investment period shall not exceed 10 years, and the Fund may consider extending the investment period for Type (A) investment units upon maturity.

3. Distribution of profits in cash. At least twice a year according to the actual rate of return of the fund. But not less than the minimum rate of return and not exceeding the maximum rate of return specified. It is a fixed rate for 10 years.

After offering the A-type investment fund units to general investors, the fund will invest in both active investment and passive investment and will continue to invest mainly in equity instruments listed on the SET, focusing on investing in companies with good rates of return. Long-term stability

1. Guaranteed minimum rate of return and advanced rates of return referring to government bond yields

2. There is an upside gain greater than the fund's previous rate of return.

3. There is a mechanism to protect the waterfall investment, as for the principal amount, the unit holders of type (A) investments are entitled to recover the principal amount according to the mentioned procedure. From the net asset value (NAV) of the mutual fund before the unit holders of type B.

Phakorn Pittawattachai, Director and CEO of the Stock Exchange of Thailand (SET), believes that this Vayupak Fund offering will receive a good response. It helps to increase the purchasing power of small investors. This is because in the past, the proportion of small investors in the country has decreased. Compared to foreign investors, as a result, the Thai stock market has to face fluctuations. While the turnover has remained stable, this reflects that individual investors in the country have liquidity. But I do not know what assets to invest in. Investing in securities listed on the fund exchange will help to enhance the investment environment. And build confidence between Thai and foreign investors to invest in the Thai stock market.