If anyone wants to find a solution for investment but stuck in many conditions, such as low investment, not much experience, no time to follow the news. An interesting solution is to invest through mutual funds.

The funds raised by the Fund will be invested in various types of assets, according to the fund's policy. This means that the money from the investor will have a professional, that is, the fund manager helps manage and continue to invest to make the fund grow. And for those who start investing and accepting risks at a low level "Fixed income fund" is a perfect solution for you.

Debt instruments can be divided into 2 types, namely government debt instruments such as government bonds, state enterprise bonds, Bank of Thailand bonds, treasury bills. For private-sector debt instruments, such as debentures, secured debentures, unsecured debentures, bills of exchange and promissory notes.

The main policy of the mutual fund is to invest in government debt securities and private debt instruments. Including various types of assets such as deposits. Therefore, before deciding to invest, we must see the information in the fund prospectus of each fund that has an investment policy. And able to divide the debt fund according to the investment policy as follows:

1.Money Market Fund and Short Term Fixed Income Fund: These 2 types of funds have a similar investment policy: investing in debt instruments with a maturity of less than 1 year, including deposits. Therefore, it is a low-risk fund and suitable for those who want to invest short-term and need low risk.

2. General Fixed Income Fund: Has the policy to invest in various types of debt instruments both government bonds and private debt instruments. Suitable for investors who accept the low risk because debt instruments will provide returns in the form of consistent interest. And even though the bond price may fluctuate according to market conditions, the average return of this type of fund received from investing in debt securities is less volatile.

3. Long Term Fixed Income Fund: There is a policy to invest in debt instruments that have a portfolio duration of more than 1 year and therefore suitable for those who accept the low risk and can invest in the long term.

4.Balanced Fund: Is a mutual fund that invests in equity and debt instruments or other assets such as deposits. However, according to the rules, we must invest in equity securities at any time not less than 35% but not more than 65% of the net asset value of that mutual fund. Therefore, suitable for those who accept risk at a moderate level and want to diversify investments in many assets.

5.Flexible Portfolio Fund: This is a mutual fund that can invest in equity securities, debt instruments or other assets but there is no restriction on the proportion of investment like mutual funds mixed with. Therefore, the allocation of investment depends on the decision of the fund manager. Which is mainly based on the current market conditions. Therefore, suitable for those who accept risk at a moderate level and want to diversify investments in many assets.

6.Fund of Funds: Have the policy to invest in other types of mutual funds, such as mutual funds, a stock fund or mixed funds, etc. On average, at least 65% of the net asset value of the fund. The rest will be invested in other types of assets such as stocks, debt instruments. Therefore, suitable for those who accept risk at a moderate level and want to diversify investments in many assets

7. Mutual funds that invest in foreign debt instruments: Have the policy to invest in various types of debt instruments abroad. This type of fund has a high to very high risk because it is an investment in foreign countries that may be exposed to the risk of fluctuations in the price of investment assets and exchange rate fluctuations.

How can we know that we make a profit or loss?

For how to see whether the fixed income fund, "profit" or "loss" can be seen from the performance of the mutual fund. That is, the net asset value (NAV) is the total asset value of the fund, deducting expenses and liabilities of that mutual fund. By calculating the asset value of the fund according to the market price (Mark to Market) each day. To reflect the true value according to the changing market conditions.

NAV reflects the performance of the fund whether growing or not, with "profit" or "loss". Including showing the purchase price or the resale price of the mutual fund.
For example, ABC Fund, the purchase price of 10 baht per unit, passed 1 year, NAV is 12 baht per unit, indicating that there is "profit". While the XYZ fund, the purchase price of 10 baht per unit, passed 1 year, the NAV is 7 baht per unit, indicating that "loss"
 

For basic techniques for choosing debt fund, after understanding the type of debt fund Must study the investment policy of each fund. Such as the proportion of investment in government bonds, how are the debentures?

Then consider fees and expenses. And see the performance in the pasts such as 3 years, 5 years, 7 years, etc. and try to choose mutual funds that generate consistent growth.

Next, look at the management capabilities of the fund manager. Which is often reflected in the return of consistent growth. And should choose mutual funds that have diversified investments in debt instruments that are in line with the needs of investors

Although most fixed-income funds have low-risk levels, fore deciding to invest must study the information all around. Because of the fund manager selects the debt instrument into the fund port appropriately according to the situation. Such as changes in interest rates, the risk from price fluctuations caused by market fluctuations or the rating of the bonds. Would cause the performance of the mutual fund to grow consistently. As a result, investors receive good returns as well.