Investing in mutual funds for results in 2026: From zero to hero

Why Should People Naturally Know About Mutual Funds?

“I have savings, but I don’t know what to do to make them grow” - this is the words of millions of people worldwide. The truth is, whether you have hundreds of thousands or tens of millions, the tool called mutual funds has opened the investment door for everyone to access the world of wealth creation. It’s no longer difficult or impossible.

The problem is, mutual funds are not just “assets” we invest in, but a way to hire professionals to manage our money constantly. Imagine: you have free time, and the fund manager works from market close to open every day, taking care of your portfolio.

Dive into the Mechanics of Mutual Funds: How Do They Work?

When we invest money into a mutual fund, what actually happens is similar to pooling with thousands of other investors, tens of thousands of people. All contribute money into a single fund. Asset Management Companies (Asset Management Companies) will then “plant” this fund into various assets—possibly stocks, bonds, gold, or even real estate.

The key in this is NAV (Net Asset Value) or “Net Asset Value.” This number is calculated at the end of each trading day and reflects how much our money has increased or decreased. If the stocks held by the fund rise in price, NAV will go up. That’s it. Our profit comes from this point.

Who Should Choose Mutual Funds?

In investing, there’s no such thing as “not suitable” if well-defined. Four groups of people find mutual funds most suitable for them:

1. Beginners with no experience - If you’ve never analyzed financial statements or don’t know what P/E ratio is, mutual funds with professional managers are what you need.

2. Busy with work - Tracking market news all day isn’t your duty. Let programs and experts do it for you.

3. Risk diversifiers - The principle of “not putting all eggs in one basket” is the most important fact. Mutual funds give you easy access to dozens or hundreds of assets.

4. Those who need tax deductions - Certain funds like RMF or SSF offer tax benefits. If you have high income and want to save on taxes, this is your tool.

Different Types of Mutual Funds: Which One Fits You?

The world of mutual funds is like a street food shop—many menus, each with different flavors.

Based on the asset class invested

Money Market Fund (Money Market Fund) - A safe home for your money. Risk 1/8, lowest. Suitable for emergency reserves.

Fixed Income Fund (Bond Fund) - Higher returns than deposits but less risky than stocks. Risk 2-4/8.

Equity Fund (Stock Fund) - A “game” for those with courage and patience to handle market swings. Risk 6/8 and above, but with higher profit opportunities.

Mixed/Hybrid Fund (Mixed Fund) - Fund managers “rebalance” between stocks and bonds based on market conditions. Risk 5/8—moderate, not too risky but not dull either.

Alternative Investment Fund (Alternative Asset Fund) - Invests in gold, oil, real estate. Risk 8+/8—only for experienced investors.

Based on special investment policies

Index Funds and ETFs - “Copy” the market index, like SET50. Low fees, no guaranteed returns, but not disappointing either.

Sector Funds (Industry Funds) - “Bet” on which industry will grow, such as Tech or Medical. High risk.

Foreign Investment Funds - Gateway to global markets: USA, Europe, China, Vietnam—anywhere you want.

Tax-advantaged Funds - SSF, RMF, ThaiESG—double win: invest and save on taxes.

How to Choose Funds Wisely

Step 1: Know “Yourself” clearly before searching

Before looking for the “best” fund, ask yourself three questions:

• What is the purpose of your investment? Buying a house in 5 years? Retirement in 25 years? Children’s education? Different goals, different choices.
• When will you need the money? The longer the time, the more risk you can take, as you have time to recover from market downturns.
• How well do you sleep at night if your portfolio drops 20%? This is the first question. Your answer will tell you whether to choose stocks or bonds.

Step 2: Read the “ID card” of the fund

Every fund has a Fund Fact Sheet—like its ID card. Check where the money goes? Which country does it invest in? What is its strategy?

Step 3: Calculate the “value” of the fund

When you find two or three promising funds, compare them based on these criteria:

Past performance - Compare with the benchmark (Benchmark). If the fund often outperforms the index, the manager is doing well.

Maximum Drawdown - The “worst” decline the fund has experienced. Past often indicates future. If you cannot tolerate that pain, don’t invest.

Sharpe Ratio - Tells how much return you get per unit of risk. The higher, the better.

Total Expense Ratio (TER) - A 1% difference per year over 20-30 years can impact your final returns by 20-30%. Very significant.

Deep Insights Elsewhere: 10 Mutual Funds to Watch in 2569

First, we need to understand what 2569 will look like.

Economic signals: “The Year of Halves” - The first half may shake from trade wars, but the second half is expected to recover.

Mega trends: AI doesn’t come alone. It’s accompanied by energy demand, infrastructure, and processing chips, creating a long investment chain.

Thai dividend-paying stocks: Defensive and income-generating

First choice for passive income amid volatility:

SCBDV (Siam Commercial Bank Dividend Equity) - Focus on large SET stocks with long dividend history. Risk 6/8, pays dividends regularly. Suitable for those with high risk tolerance but need cash.

KFSDIV (Krungsri Dividend Equity) - Dividend stocks, mixed with mid and small caps. Risk 6/8, more growth potential than SCBDV due to diversification.

Foreign tech-focused funds: Going global

KT-WTAI-A (K-TAM World AI) - Invests via Allianz Global Artificial Intelligence. Global companies benefiting from AI. Risk 6/8, for believers in AI’s future.

B-INNOTECH (Bualuang Innovation) - Invests via Fidelity Funds - Global Technology. Covers more than AI. Risk 7/8, for tech enthusiasts.

PRINCIPAL VNEQ-A (Vietnam Equity) - Fast-growing emerging market. Active management. Risk 6/8. If Thai stocks seem dull, consider here.

Bond Funds: “Brakes” for your portfolio

KTSTPLUS-A (Krungthai Short-term Bond Plus) - Short-term bonds, investment-grade deposits. Risk 4/8. For emergency funds or portfolio buffers.

Mixed Funds: Self-rebalancing

TISCOFLEXP (Tisco Flexible Plus) - Fund manager has full discretion to adjust stocks/bonds/assets from 0-100%. Risk 6/8. If you trust the manager’s skill, this is an option.

Themed Funds: Investing in the future

KFCLIMA-A (Krungsri ESG Climate Tech) - Invests via DWS in climate solutions. Risk 6/8. Clean energy, EVs—trendy.

K-GHEALTH (K-Global Healthcare) - Invests via JPMorgan in global healthcare companies. Risk 7/8. Stable healthcare, steady returns.

ASP-THAIESG (Asset Plus Sustainable Thai Stocks) - Active selection of Thai stocks based on ESG standards. Risk 6/8. Good for society and your wallet.

Pros and Cons: Revealing What People Usually Hide

Advantages of mutual funds

✓ Diversification - Small amount of money, access to dozens or hundreds of assets

✓ Expert management - Analysis team working while you sleep

✓ High liquidity - Can sell back every business day. Unlike real estate, which requires contracts and months.

✓ Low investment minimum - Some funds start at just a hundred baht.

✓ Variety - From safest (Money Market) to riskiest (Alternative)

Disadvantages you should know

✗ Fees - Experts don’t work for free. TER cuts into your returns.

✗ Lack of control - If the fund manager makes wrong decisions, you bear the consequences.

✗ Manager quality risk - The fund’s performance depends on the individual’s skill.

✗ Dividend tax - Dividends are taxed at 10% withholding.

Hidden Fees: The Termites of Your Returns

Fees are divided into two types:

Visible fees:

• Front-end fee: deducted at purchase
• Back-end fee: deducted at redemption ((less common now))
• Switch fee: when transferring between funds

Hidden fees in NAV:

• Management fee
• Custodian fee
• Registrar fee

All are “included” in the TER (Total Expense Ratio)

Real example: Fund A has a TER of 2.5% per year. Fund B (with the same policy) has a TER of 1.5%. That 1% difference over 20-30 years can impact your final value by 20-30%. Very significant.

Summary: Start or Adjust?

Mutual funds are not just tools for beginners but weapons for investors of all levels. For 2569, filled with variables like AI, energy, healthcare, and trade uncertainties, proper portfolio management based on megatrends and sound principles will be the key to success.

Top 5 practical tips:

1. Know yourself before choosing a fund
2. Don’t rely heavily on past performance; use it only for analysis
3. Always compare TER and Sharpe Ratio
4. Invest long-term (The key)
5. Relax—investing isn’t riding a bicycle