A few weeks ago I mentioned that it was coming to the time of the year where brokers were going to be talking about LTF/RMF buying and on point its beginning.

I have been wondering for the past few years whether or not the LTF buying has been having the impact that brokers/research houses are talking about given the fact that the size of the market has increased substantially and therefore the net impact from this buying is having a limited impact.

Last year’s fund inflows into LTFs and RMFs in November and December were 33.1 billion baht, down 7.2% year-on-year from 35.7 billion in 2015, said Mrs Poranee.

Investment from retail investors purchasing LTFs and RMFs in the last two months of the year usually tallies 55-60% of total investment in those funds annually, she said.

“It is expected investment in LTFs and RMFs will sustain the equity market’s trading volume [for the remaining months],” said Mrs Poranee.

For this year’s first half, investors poured 9.6 billion baht into 77 LTFs. It is expected that fund inflows into LTFs will be 6.45 billion baht in November and 26.4 billion in December.

The investment sum into LTFs was 58.7 billion baht in 2016.

From 2010 to 2016, average investment in LTFs in November and December comprised 11% and 45% of the total for each month, respectively. Average investment in November was 5.5 billion baht and for December was 23.4 billion.

Source: Bangkok Post

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