For stock market investment, if an investor with expertise, time, and risk tolerance at a high level, can buy and sell shares on their own. But for investors who are still afraid, don’t have the experience, a limited amount of money and have no time to track information for investment decisions. Must invest through the stock fund.

Mutual funds established by Mutual fund management company or in short, the Asset Management Company. Asset Management Company will take the money of many investors together in large sums and then registered to be a juristic person. Then the money raised was invested in securities or assets such as stocks, debt instruments, gold, oil, etc. A professional, also called a fund manager manages the fund in accordance with the investment policy specified in the prospectus for the sale of investment units.

Although each fund has a fund manager closely supervised to generate returns for growth; investors should not decide to invest, just read the investment policy of each fund. But must study the investment portfolio details of that mutual fund. Even though the fund is the same type but there are different investment policies.

Each fund is different. Depends on investment policy which can consider choosing a suitable mutual fund for investors by choosing to invest according to the type of policy as follows
 

1. Stock funds are divided according to the investment style of the fund.

 

• Passive Funds: This type of fund aims to generate returns that are in line with market returns or indices that the fund sites, such as SET Index
  
  
• Active type mutual funds: This type of investment aims to generate better returns than market returns or may have investment goals. To reduce the risk to be lower than the market by proactively dividing the investment into 3 types
   

1. Value Stock Fund focuses on investing in stocks with good fundamentals and reasonable prices.
   
   
2. Growth Stock focuses on investing in stocks of companies with high business growth prospects.
   
   
3. Mixed stock is a combination of investment style, Value Stock and Growth Stock.
    

2. Stock funds divided by industry groups

This type of fund specifies a clear policy that focuses on investing in stocks in any industry, such as energy groups, financial business groups, infrastructure group, consumer groups, etc. If investors view that the industry is interesting, then can choose to invest in funds that focus on stocks in that business group.

Advantages of stock funds, in addition to having a fund manager with expertise in the stock market to manage money for investors to grow, The stock fund is considered a financial channel that is suitable for those with long-term financial planning goals. Because if invest continuously for a long period of time, such as 10 years or 20 years, can reduce the chance of loss. While the return will increase continuously.

And stock funds Suitable for people with limited investment Because you can invest a few baht at a time such as 1,000 baht and can be traded conveniently At present, online transactions can be made in every account.

For the number of mutual funds that are suitable for each person, there is no fixed formula. However, the strategy may be divided into 2 funds, namely, primary stock funds and secondary stock funds. By the main fund, focus on stock funds that have the policy to invest in value stocks or focus on investing in stocks in the SET50 and RMF indices with a policy to invest in stocks.

For secondary stock, funds should focus on funds that have policies to invest in medium and small stocks that pay consistent dividends or focus on investing in stocks of companies with high business growth prospects. If there is money left, the mutual fund will mix again.

The good way for investment in mutual funds is Dollar Cost Averaging: DCA. By gradually investing in the same amount of money Regularly in the long term by specifying the amount of money to invest and the time, such as every month-end, investing in 1 stock fund, amount of 1,000 baht.

However, during the stock market continued to decline, such as the year 2018. Investors who use DCA investment will receive the same loss which is in accordance with the overall investment conditions. But the advantages of using such a strategy in investing during the stock fall are will receive more investment units automatically. However, it is good to reduce the risk of investment. Should choose a stock fund that has a good operating history with low operational volatility. Which can choose a stock fund that receives Morningstar Rating 4 - 5 stars from Morningstar, which is an information and analysis service on global mutual funds.

Therefore, DCA investment in addition to spending less money can also be bought at an average price that is not too high. If the stock market rises, it will get impressive returns and reduce high loss opportunities in the case of stock market declines.