Understand mutual funds clearly: Comprehensive guide and 10 recommended funds for the year 2026

“Want to find investment channels but don’t know where to go” - This mindset is not unusual because the truth is, regardless of how much capital you have or how much experience you possess, everyone can build wealth through a tool called Mutual Funds. This article will provide a clear overview and highlight 10 mutual fund options to watch in 2569 (2026) so you can plan your investments confidently.

What are mutual funds and who are they suitable for?

If you need a simple explanation, Mutual Fund (Mutual Fund) is a pooling of small investors’ money into one fund. It’s like creating a “collective force” which is then managed by a professional called Fund Manager to handle the investments.

Our money is converted into “unit trusts”, and the value of each unit is called “Net Asset Value” or NAV (Net Asset Value). NAV is announced at the end of each trading day to reflect whether the assets invested by the fund have increased or decreased in value.

Who are mutual funds suitable for?

Mutual funds are suitable for almost everyone, especially:

• Beginner investors: who lack in-depth knowledge of individual stocks
• People with no time: for working individuals who can’t keep up with market news
• Risk diversifiers: because the fund manages the portfolio for you
• Tax savers: some types like SSF, RMF, ThaiESG offer tax benefits

With larger capital, fund managers can access special investment opportunities not available to retail investors, such as certain IPOs or private corporate bonds.

Types of mutual funds: Make a clear decision

Categorized by asset type

Money Market Funds (Money Market Fund): Lowest risk, suitable for short-term savings, investing in deposits and short-term debt instruments.

Fixed Income Funds (Fixed Income Fund): Low to moderate risk, offering better returns than savings accounts but less risky than stocks.

Equity Funds (Equity Fund): Stock funds with high risk but the highest potential long-term gains. Suitable for those saving over many years.

Mixed/Hybrid Funds (Mixed/Hybrid Fund): Managers adjust the proportion of stocks and bonds based on market conditions, offering maximum flexibility.

Alternative Investment Funds (Alternative Investment Fund): Invest in gold, oil, real estate; high risk and complex.

Categorized by special policy

Index Funds (Index Fund) and ETFs: Passive investing tracking indices like SET50 or S&P500, with lower fees than regular funds.

Sector Funds (Sector Fund): Focus on a single industry such as technology, healthcare, energy. High risk but potentially high returns if forecasts are correct.

Overseas Equity Funds (Overseas Equity Funds): Enable Thai investors to expand into markets like the US, China, Vietnam, or Europe.

Tax-saving funds: SSF, RMF, ThaiESG with holding conditions to enjoy tax benefits.

How to choose the “right” fund

Step 1: Deeply understand yourself

Before looking for funds, understand yourself clearly through 3 questions:

• Investment goals: Why are you investing? Retirement, buying a house, education?
• Investment horizon: How long can you keep your money invested?
• Risk tolerance: Can you sleep well if your portfolio drops 20%?

Step 2: Read the prospectus

Study the Fund Fact Sheet to see:

• What assets does this fund invest in?
• Which countries does it focus on?
• Active or passive strategy?

Step 3: Compare figures

Performance: Compare with benchmark (Benchmark) and other funds in the same group. Remember, “past performance does not guarantee future results.”

Maximum Drawdown: The highest loss experienced, indicating risk level.

Sharpe Ratio: Measures the reward-to-risk ratio; higher is better.

Total Expense Ratio (TER): Impacts long-term returns; lower is preferable.

10 mutual funds to watch in 2569 (2026)

Economic outlook: “A Year of Recovery”

In 2569:

• The first half may be volatile, with a better outlook in the second half.
• Mega trends: AI-driven energy demand, investment in clean energy, infrastructure, and chips.

Thai stocks - Defensive and dividend-focused

Amid volatility, high-dividend funds are a good defensive strategy.

1. SCB Equity Dividend Fund (SCBDV)

• Asset Management: SCBAM | Type: Thai dividend stocks | Risk: 6
• Invests in large-cap Thai stocks with strong fundamentals (Energy, Retail, Banking)
• Suitable for: Those needing cash flow during investment.

2. KASIKORNBANK Dividend Equity Fund (KFSDIV)

• Asset Management: KSAM | Type: Thai dividend stocks | Risk: 6
• Mix of large, medium, small-cap stocks for growth opportunities
• Suitable for: Those seeking growth with dividends.

Foreign stocks - Riding the global wave

3. KTAM World Technology Artificial Intelligence Equity (KT-WTAI-A)

• Asset Management: KTAM | Type: Foreign AI stocks (AI) | Risk: 6
• Invests via Allianz Global Artificial Intelligence in AI companies worldwide
• Suitable for: Believers in explosive growth of AI.

4. Bualuang Global Innovation & Technology (B-INNOTECH)

• Asset Management: BBLAM | Type: Foreign tech stocks (Technology) | Risk: 7
• Invests via Fidelity Global Technology Fund covering Cloud, E-commerce, Fintech
• Suitable for: Long-term growth from technology.

5. Principal Vietnam Equity A (PRINCIPAL VNEQ-A)

• Asset Management: Principal | Type: Vietnam stocks | Risk: 6
• Managers select high-growth Vietnamese stocks (Banks, Retail, Tech)
• Suitable for: Investors seeking high-growth emerging markets.

Bond Funds - Shelter during market volatility

6. Krungthai Short-Term Bond Plus (KTSTPLUS-A)

• Asset Management: KTAM | Type: Short-term bonds | Risk: 4
• Invests in quality bonds (Investment Grade) domestically and abroad
• Suitable for: Risk-averse, short-term savings.

Hybrid Funds - Adjust based on market conditions

7. TISCO Flexible Plus (TISCOFLEXP)

• Asset Management: TISCO AM | Type: Hybrid | Risk: 6
• Adjusts stock-bond ratio from 0-100% based on market outlook
• Suitable for: Those trusting the manager’s skill, not timing the market.

Thematic Funds - Investing in world-changing trends

8. Krungsri ESG Climate Tech (KFCLIMA-A)

• Asset Management: KSAM | Type: Foreign ESG/Climate () | Risk: 6
• Invests via DWS Invest ESG Climate Tech in climate solutions companies
• Suitable for: Long-term sustainable growth.

9. K-Global Healthcare (K-GHEALTH)

• Asset Management: KAsset | Type: Foreign Healthcare (Healthcare) | Risk: 7
• Invests via JPMorgan Global Healthcare Fund in global health companies
• Suitable for: Stable growth, essential healthcare businesses.

10. Asset Plus Sustainable Thai Stocks (ASP-THAIESG)

• Asset Management: Asset Plus | Type: Thai stocks (ThaiESG) | Risk: 6
• Selects Thai stocks with good ESG scores per SET ESG Rating
• Suitable for: Quality Thai stocks, sustainability-minded, tax benefits.

Pros and cons of investing in mutual funds

Advantages

• Diversification: Small amount of money yields a diversified portfolio
• Professional management: No need to follow the market yourself
• High liquidity: Can buy/sell every trading day
• Low minimum investment: Many start with hundreds or thousands of baht
• Variety: Wide policy options

Disadvantages

• Fees: Management fees reduce returns
• Limited control: Cannot pick individual stocks
• Manager risk: Poor decisions can underperform
• Tax burden: Dividends taxed at 10%, capital gains are exempt

Fund fees: Don’t avoid them

1. Direct investor fees

• Sales fee: When buying units, e.g., 1.5% means 10,000 Baht becomes 9,850 Baht invested
• Redemption fee: When selling, less common now
• Switching fee: Moving to another fund within the same asset management company

( 2. Fund management fees Embedded in NAV, deducted daily:

• Management fee: Paid to the fund manager
• Custodian fee: Bank managing assets
• Registrar fee: For maintaining investor data

All these form the Total Expense Ratio )TER###, which should be compared before investing. A 1% difference over 20-30 years can significantly impact the final portfolio value.

Conclusion: Start today

Mutual funds are effective and accessible investment tools for everyone. For 2569 (2026), which is expected to be full of changes, a balanced portfolio of Thai stocks, foreign funds, bonds, and themed funds will be key to building long-term wealth.

The key is to study thoroughly, choose funds aligned with your goals, and remember that consistent monitoring and decision-making are essential because true wealth is built not by luck but by good choices and patience over the long term.