Vayupak Nueng Mutual Fund Launched Stimulates Stock Market After 5 Years Foreigners Sell 530 Billion

Reporters reported that on August 13, 2024, Mr. Pichai Choonhavajira, Deputy Prime Minister and Minister of Finance, Mr. Lawan Saengsanit, Permanent Secretary of the Ministry of Finance, Ms. Pornanong Pusaratrakul, Secretary General of the Office of the Securities and Exchange Commission (SEC), Mr. Phakorn Pittawattachai, Director and Managing Director of the Stock Exchange of Thailand (SET), held a joint press conference. “Vayupak Mutual Fund 1” Type A, financial limit 100,000-150,000 million baht, minimum investment 5,000 baht per person, 10 baht per unit, is expected to be opened for sale next September.

Mr. Pichai said: The Cabinet (Cabinet) meeting approved the Finance Ministry’s approval to proceed with Vayupak Fund 1. It is preparing to offer Type A investment units and list them for trading on the stock exchange in September 2024 with the aim of restoring and enhancing the investment environment. Increasing savings and investment options for citizens and general investors in an environment where deposit interest rates are low. Encouraging people to participate in stock market investment through Vayupak Nueng Fund, which will create investment incentives and enhance the confidence of Thai and foreign investors in stock market investment.

“Over the past five years, the Thai stock market has been extremely volatile. It turns out that net foreign investors sold more than 530,000 million baht in the Thai stock market, while the trading value on the stock exchange and the fundraising value in the equity and debt markets slowed down. It reflects the economic situation that has not fully recovered. Citizens and institutional investors in the country still have excess liquidity of 4-5 trillion baht from the current liquidity of 23-24 trillion baht.

Mr. Pichai continued that the Ministry of Finance will allow small investors to invest in the form of Small Lot First share distribution, with a minimum investment of 5,000 baht per person, and the Vayupak Mutual Fund 1 will receive dividends every year according to the effective rate of return. But not less than the minimum rate of return and not exceeding the maximum return. The fund will be a good choice compared to the relatively low interest rates. The fund has relatively low risks and because it is a fund structure, the government has continuously issued measures to support the capital market, starting with the Thai Environmental, Social and Governance (ESG) standards, to promote savings and long-term investment in companies that take into account ESG considerations Type A of the Vayupak Nueng Mutual Fund and is considering taking additional measures to support the capital market continuously this year. To gain confidence”

Mr. Luan said that on August 16, 2024, the Ministry of Finance and relevant authorities will hold a meeting to consider setting the minimum rate of return. And advanced rates of return, then we will inform retail investors of the details again. Through the investment prospectus in September 2024, the funds will be raised by offering Type A investment units to the general investors. Which is the first time and recently, the fund has Krungthai Asset Management Public Company Limited and MFC Asset Management Public Company Limited as fund managers. To view the investment guidelines of the fund will invest in both active (active) and passive (passive) securities, mostly investing in equity instruments in the stock market. Focus on investing in companies with good returns, stability and sustainable business operations.

Mr. Phakorn said, Today, local investors have a decreasing proportion of their investments in the stock market. If there are additional investment units in Vayupak, it will increase the purchasing power of individual and institutional investors in the market. With a fund structure that guarantees minimum returns and has the opportunity to achieve upside gains to protect clear benefits. Investing in Vayupak Mutual Fund 1 during this period is a good time because the PE value is at a low level compared to the past. And low compared to neighboring countries of Thailand.