Understanding mutual funds and how to choose investments wisely in 2026

“Want to save more for your future but feeling confused?” Don’t worry, because investing through mutual funds might be the right answer for you. Whether you’re a beginner or experienced, or even if your savings capacity is limited, today we will provide comprehensive knowledge about this and recommend worthwhile mutual fund options for investment in 2026.

What is a mutual fund? Simple explanation

Imagine that a mutual fund is like a group of investors pooling their money together to increase their investment power. When many people combine their funds, their ability to invest also increases. This is the basic principle of (Mutual Fund)

When you send money to a mutual fund, your money is converted into “unit trusts” (Units), and managed by a professional called the “fund manager” (Fund Manager), who works for a securities company managing the fund (Asset Management Company). They will manage this large pool of money, choosing which assets to invest in according to the fund’s policy.

The value of each unit is called “NAV” (Net Asset Value) or “Net Asset Value.” This figure is updated at the end of each trading day, depending on whether the assets held by the fund have increased or decreased in value. When the value increases, that is our profit.

Who is it suitable for? The answer is almost everyone

If you decide to invest, you might be among the following groups:

1. Beginners - If you don’t know how to analyze stocks or bonds, having experts behind you will help you avoid mistakes.

2. Busy workers - If you voluntarily don’t have time to read market news, mutual funds will do that for you.

3. Risk diversifiers - The investment principle is “don’t put all your eggs in one basket.” Mutual funds help you diversify your money across various asset types.

4. Tax-benefit seekers - Some funds like SSF, RMF, or ThaiESG allow for tax deductions.

Additionally, mutual funds give investors access to specific investment opportunities, such as IPO stocks or private bonds sold in limited quantities, which are not accessible to the general public.

Types of mutual funds: Choose according to your goals

The world of mutual funds is diverse. Here are the most important classifications:

Based on assets invested:

1. Money Market - Lowest risk. Suitable for emergency savings, investing in deposits and short-term bonds.
2. Debt Securities - Low to moderate risk. Focus on bonds and fixed-income securities. Suitable for those seeking steady returns.
3. Equities (Stocks) - High risk but maximum return potential. Suitable for long-term investors.
4. Mixed - Fund managers adjust the proportion of stocks and bonds based on market conditions. Suitable for hesitant investors.
5. Alternative Assets - Investing in gold, oil, real estate. Very high risk. Suitable for experts.

Based on special policies:

• Index/ETF - Tracking an index, with low fees.
• Industry-specific - Focused on a particular industry. High risk.
• International - Investing outside Thailand.
• Tax-advantaged - With holding conditions but offering tax benefits.

How to choose the right mutual fund

Before reviewing fund lists, understand yourself first.

Step 1: Self-assessment

Ask yourself three questions:

• Goals: Why are you investing? Retirement? Buying a house? Education for children?
• Time horizon: How long will you keep your money invested? The longer, the more you can invest in risky assets.
• Risk tolerance: Can you sleep well if your portfolio drops 10% or 20%?

Step 2: Study investment policies

Read the Fund Fact Sheet of the fund to see:

• What assets are invested in
• Which countries
• Active or passive strategy

Step 3: Compare data

• Past performance - Use only for comparison with benchmarks, not future prediction.
• Maximum Drawdown - Shows the largest loss experienced.
• Sharpe Ratio - The risk-adjusted return.
• Total Expense Ratio (TER) - The management fee. Funds with similar policies but lower TER generally yield higher returns over time.

10 mutual funds to watch in 2026

Before listing, understand that the global economy in 2026 is expected to be volatile in the first half but recover in the second half. Key megatrends include AI, clean energy, infrastructure, and technology.

( Thai dividend stocks fund

)# 1. SCB Dividend Equity Fund ###SCBDV###

• Management Company: SCB Asset Management
• Policy: Invest in large Thai stocks with consistent dividends (Focus on energy, retail, banking)
• Risk: High (6/10)
• Suitable for: Those seeking cash flow and willing to accept Thai stock market volatility

(# 2. Krungsri Dividend Equity Fund )KFSDIV###

• Management Company: Krungsri Asset Management
• Policy: Dividend stocks, mixed with various-sized stocks to enhance growth opportunities
• Risk: High (6/10)
• Suitable for: Risk-tolerant investors seeking both dividends and growth

( International stock funds: Keep an eye on global trends

)# 3. KTAM World Technology Artificial Intelligence Fund ###KT-WTAI-A###

• Management Company: KTAM
• Policy: Invest via the main fund Allianz Global Artificial Intelligence in companies benefiting from AI
• Risk: High (6/10)
• Suitable for: Long-term investors who believe in AI potential

(# 4. Bualuang Global Innovation and Technology Fund )B-INNOTECH###

• Management Company: BBL Asset Management
• Policy: Invest through Fidelity Funds - Global Technology Fund in leading tech companies (Cloud, E-commerce, Fintech)
• Risk: High (7/10)
• Suitable for: Those wanting to follow the tech world and accept high risk

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

• Management Company: Principal Asset Management
• Policy: Select promising Vietnamese stocks, focusing on banks, retail, technology
• Risk: High (6/10)
• Suitable for: Investors in emerging markets who believe in Vietnam’s potential

( Bond funds: Shelter during market volatility

)# 6. Krungthai Short-Term Bond Plus Fund ###KTSTPLUS-A###

• Management Company: KTAM
• Policy: Deposits, quality bonds (Investment Grade) with an average maturity of less than 1 year
• Risk: Low to moderate (4/10)
• Suitable for: Low-risk investors or short-term savings

( Flexible mixed funds: Adjust according to the market

)# 7. TISCO Flexible Plus Fund ###TISCOFLEXP###

• Management Company: TISCO Asset Management
• Policy: Adjust stock, bonds, other assets from 0-100% based on market conditions
• Risk: High (6/10)
• Suitable for: Confident investors trusting the manager, not wanting to time the market themselves

( Trend funds: Invest in the future

)# 8. Krungsri ESG Climate Tech Fund ###KFCLIMA-A###

• Management Company: Krungsri Asset Management
• Policy: Invest in companies solving climate issues, clean energy, electric vehicles
• Risk: High (6/10)
• Suitable for: Long-term investors following sustainability trends

(# 9. K-G Healthcare Global Fund )K-GHEALTH###

• Management Company: Kasikorn Asset Management
• Policy: Leading healthcare companies worldwide, pharmaceuticals, medical tech, medical services
• Risk: High (7/10)
• Suitable for: Those seeking steady growth; healthcare businesses are always essential

(# 10. Asset Plus Thai Sustainable Equity Fund )ASP-THAIESG###

• Management Company: Asset Plus Fund Management
• Policy: Thai stocks with strong ESG performance according to SET ESG Rating
• Risk: High (6/10)
• Suitable for: Investors in quality Thai stocks, sustainability-conscious, seeking tax deductions

Advantages of investing in mutual funds

• Diversification: Small amounts can hold a variety of assets
• Professional management: No need to time the market yourself
• High liquidity: Can sell back every business day
• Low minimum investment: Many funds start at just a few hundred baht
• Variety: From low to high risk options

Disadvantages to be aware of

• Fees: Deduct returns, especially over the long term. A 1% difference over 20 years can significantly impact your final value.
• Lack of control: Everything depends on the fund manager.
• Manager risk: Poor decisions can lead to poor performance.
• Tax burden: Dividends are subject to 10% withholding tax.

Fees you should know

Directly charged to investors:

• Sales fee (at purchase) - e.g., 1.5%, meaning only 98.5% of your money is invested.
• Redemption fee (when selling)
• Switching fee

Hidden in NAV (TER - Total Expense Ratio):

• Management fee (Fund manager salary)
• Custodian fee
• Registrar fee

The total expense ratio (TER) is automatically deducted from the fund daily. Choosing funds with lower TER will generally yield higher returns in the long run.

Summary

Investing through mutual funds is a good option for the general public, especially those aiming to build long-term wealth without being experts.

For 2026, which is expected to be full of opportunities and challenges, selecting mutual funds aligned with key trends such as AI, clean energy, technology, and sustainability will be crucial for wealth creation.

Most importantly: give your money time to grow, don’t rush, and choose funds with reasonable fees. Over the long term, small differences in fees can have a significant impact on your final returns.