Bualuang Securities Indicates the global economy is showing signs of recovery. After many countries have accelerated the vaccination of COVID vaccination targets. Recommend investment strategies for mutual funds in a combination theme Between stock funds grow And stock funds focus on value That choose medium-sized stocks after low P / E values and inexpensive P / BV.
Mr.Sermsak Wongsittichok Director of Financial Instruments Trading Bualuang Securities (Securities) Public Company Limited revealed that the overall picture of the global stock market is likely to recover clearly in the year 64, despite the number of COVID-19 cases. New cases continue to increase in many countries. This can be reflected by a variety of factors, such as: 1. Vaccination against COVID-19. It started to meet targets in many countries. As a result, cities may be opened in some countries.
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2. Purchasing Managers Index (PMI), an index used as an indicator of the economic conditions of the manufacturing and service sectors during the past March. Increased in almost all major countries such as the United States, Europe and Japan 3. The US GDP in Q1 ’64 rose more than expected at 6.4%.
4. Many governments continue to use economic stimulus measures. The current President of the United States, Joe Biden, approved a budget to stimulate the US economy. And remedies those affected by the COVID-19 amount of US $ 1.9 trillion or more than 58.7 trillion baht and the Federal Reserve (Fed) to maintain interest rates and to move forward with the asset bond purchase program. Central banks around the world still maintain a low short-term interest policy. Make investors more confident Support the stock market to invest.
This is despite good news supporting the overall stock market. But there are still issues that investors must follow closely, such as: 1. The situation of the COVID-19 outbreak 3 in Europe and Thailand 2. The economic recovery may lead the Fed to decide to adjust some measures. Renewal relief measures that allow commercial banks to not have to take bonds and account funds deposited with the Fed to calculate their equity ratio. To accommodate the damage that may arise from bad debt
3. Injecting money into the economy. Resulting in higher inflation expectations Commodities such as oil price New High in 1 year 4. Interest rate of 10-year US Treasury bonds rose relatively quickly until pressure on the valuation of the stock market and 5. China’s monetary policy has become more stringent.
For mutual fund investment strategies During an economic recovery trend, BLS Top Funds recommends that investors combine their portfolios. Between Growth Stock Fund and Value Equity Fund (Value) focuses on funds that invest in medium and small stocks. Because stock prices have a better chance of rising than large stocks By choosing funds that invest in companies with low price-to-net ratio or P / E ratio and inexpensive price-to-book ratio or P / BV ratio, which is a value-style investment method.
For featured funds For growth equity funds, it is advisable to choose a fund that invests in the new economy, such as the Mega Trend health innovation stocks or technology stocks such as the BCAP, Next Gen Health or BCAP-XHEALTH IPO. Freshmen investing in innovative health care businesses Which is a business with high growth potential The fund will focus on diversifying the risk of investment portfolios. With more than 300 securities and is not limited to investment in the Health care group, suitable for long-term investment.
As for the equity fund, it emphasizes value and recommends a division that focuses on investing in commercial banking stocks because it will benefit from the economic recovery that KTAM World Financial Service Fund or KT-FINANCE that invests in financial services groups around the world. Including funds that focus on investing in US stocks Small and medium sizes with consistent profit growth And the price is not too high, such as Aberdeen American Growth Fund – Smaller Company Fund or ABAGS etc.
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