The Ministry of Finance has injected 150 billion baht into the Wayupak Mutual Fund in the hope of boosting the stock market starting in September this year, with a minimum investment of 5,000 baht.

Today (August 13, 2024), reporters reported on the Ministry of Finance. The latest progress of Vayupak Fund fundraising 1. The Ministry of Finance is ready to offer Class A investment units of 100,000-150,000 million baht to general investors. And it will be listed on the Stock Exchange of Thailand in September this year to increase people’s savings options. Restore investment sentiment amid the decline of the Thai stock market.

Mr. Pichai Chunhavajira, Deputy Prime Minister and Minister of Finance, spoke about the origin and purpose of raising funds through the Vayupak Fund. In the past, the situation of the Thai capital market was quite unstable. This was caused by the outflow of foreign capital from the stock exchange. Various uncertainties such as fluctuations in the global financial market and domestic household debt problems, etc. In the past 5 years, we have found that foreign investors are net sellers of the Thai stock market. The total value exceeded 530 billion baht, and the trading value of the stock exchange, including the financing value of the stock and debt instrument markets, has slowed down. It reflects the overall situation that the economy cannot fully recover. However, domestic citizens and institutional investors still have excess liquidity and are looking for investments that can provide good returns. And have long-term stability

Currently, Vayupak Mutual Fund 1 has a net asset value of more than 300 billion baht, up nearly 15% since the fund was transformed in 2013, with most of its investments in equity instruments listed on the stock exchange. Some are invested in short-term debt instruments. In the past, the Ministry of Finance received more than 40 billion baht in dividends from Vayupak Mutual Fund, which is managed by Krung Thai Asset Management Public Company Limited and MFC Asset Management Public Company Limited. The Ministry of Finance will make new adjustments to the securities holdings within Vayupak Fund to make the investments more relevant to the investment objectives.

1. Value of Class A investment unit – approximately THB 100,000-150,000 million.

For general investors, shares will be allocated in small lots on a priority basis, with a minimum investment of 5,000 baht per person.

2. The initial investment period of Class A investment units shall not exceed 10 years. The Fund may consider extending the investment period.

3. Dividends are paid in cash at least twice a year based on the actual rate of return of the fund. However, they shall not be lower than the minimum rate of return and shall not exceed the maximum rate of return stipulated. This is a constant rate for 10 years.

After issuing Class A investment units to general investors, the fund will invest in active and passive investments, and continue to focus on equity instruments listed on the stock exchange, with a focus on investing in companies with higher returns.

1. Guaranteed minimum return rate and advance return rate refer to government bond returns

2. The cumulative gain is greater than the fund’s past returns.

3. There is a waterfall investment protection mechanism for the principal, and the unit holders of Class A investment are entitled to receive principal repayment in accordance with the above method. The net asset value (NAV) of the mutual fund from the previous Class B unit holders.

Phakorn Peetathawatchai, director and manager of the Stock Exchange of Thailand (SET), believes that the Vayupak Fund issuance will receive a good response. It will help increase the purchasing power of small investors. This is because the proportion of small investors in the country has declined in the past. Compared with foreign investors, the Thai stock market is bound to face fluctuations. The transaction volume remains stable, which reflects that retail investors in the country have liquidity. But I don’t know what assets to invest in. Investing in securities listed on the fund exchange will help improve the investment environment. Build confidence for Thai and foreign investors to invest in the Thai stock market.