Over the COVID period, the Mutual Fund business has been affected like other businesses. At the end of Q1/2020, the net value of the Thai Mutual Fund assets was 4.6 trillion baht which dropped 15.30% from the year-end 2019, and money flew out 3.9 hundred billion baht.

However, after the global including Thailand lockdowns were eased and the government has launched economic stimulus plans to support people, the investment environment has been gradually recovering.

Similar to Mutual Fund, in Q2/2020 the money flew in Thai Mutual Fund at 40,000 million baht. Noticeably, the investors still paid interest to security so they focused on investing in Mutual Fund with low risk such as Money Market Fund, Bond Fund (source: Morningstar).

In fact, we assume that the investment will no longer be the same. In the past, Mutual Fund trade was arranged at the bank. During the COVID situation, investors can manage that through online channels. The asset management companies have emphasized the development of online platforms and applications for fast and convenient alternatives to investors. All concerned parties have also adjusted themselves well in tough times.

Then the choice for investment assets has to be changed accordingly. It was found that high-risk and big profit assets have been tremendously affected by the long-term crises. Consequently, the profit gained from the stock market has been reduced and that drove investors to pay attention to more security.

However, some businesses have gained advantages from the COVID-19 crisis like technology. More demand in technology comes from many companies throughout the world as employees have to work from home. Medical & Health businesses are also at the forefront to serve the needs in developing COVID-19 vaccines. The shares of those two business groups attracted investors so the stock value rose sharply.

As a result, the Mutual Funds which have an investment policy in Technology and Medical & Health groups will gain interest from investors accordingly as they provide good profit. In Q2/2020, the Thai Mutual Fund that invested in the Technology group, received 27.89% average profit while Mutual Fund invested in the Medical & Health groups got 17.99% average profit.

Thus, the asset management companies which invested in those two business groups placed first priority on investors. They issued practices in managing funds to drive efficient and sustainable performance, continually creating and developing new products and services for the highest benefits to investors.

Investors also have to adapt themselves by studying more information and carefully investing in line with the situation to minimize the risk of an overall stock portfolio. For stock investment, we have to analyze the business quality, consider growth possibility among uncertainty, and emphasize investing with certain business leaders. We may do that by studying in motivation books before making the decision.

Even though COVID-19 is going to last, it doesn’t mean that investment is risk-free. Looking through the fluctuation aspect, we still see a high level of adjustment and high fluctuation can be returned anytime.

To obtain the utmost profits in the midst of a crisis, investors should pick a strategy that creates long-term investment without being shaken by short-term fluctuation. That is to diversify and manage your investment in a timely manner. The financial investment can be divided into two major categories.

1.Financial investment probably used in the near future: Investment aimed to be used within 1-2 years, should be highly secured, low fluctuated and high liquidity such as Short-term Bond Fund (for money needed in 1-2 months), Term Fund (for money needed in 3-12 months), Long-term Bond Fund (for money needed in 1-2 years). Even this part of money may not provide high profit, it would lessen concerns on long-term investment.

2.Long-term financial investment in 3 years plus: This type of investment is available in both domestic and international stock markets, focusing on business aligned with changes after COVID-19 crisis. For example, Medical and Health companies including medicine manufacturing, medical devices and hospitals, or Technology related group, Aging Society group whose demand is not only treatment but also quality of life at affordable rate. In addition, some amount of money may be shared with investment in stock that provides high profit including Real Estate Investment Trust (REITs), and Infrastructure Fund which normally gives good profit during low-interest rate and not so high fluctuation.
 

Therefore, in high uncertainty timing, port investment should be arranged appropriately by diversifying investment domestically and internationally. Also, investment themes should be selected according to personal objectives. In those ways, efficient profit can be obtained and might as well bring a smooth diversification.