Call for long-term investments
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TMB Asset Management Co recommends long-term investments while Thailand’s economy is in a period of slow growth and the global economy remains unpredictable, chief executive officer Somjin Sornpaisarn said at a seminar this past weekend.
The company’s research shows that those who invest in stocks for the long term, in line with the average economic cycle of seven years, see average returns of 12.20 per cent a year. This compares with average annual return on investment from bank deposits at 2.55 per cent a year, and from the bond market about 5.72 per cent.
Somjin said the company suggested that investors focus on what they want from the investment. If their focus is long-term, they should choose stocks that will generate ROI between 10 and 12 per cent a year for a period of at least six years.
On the other hand, if they need high ROI in the short term, they should select stocks that have high prices but also high investment risk, he said.
He also suggested that investors balance their portfolios, investing both in the domestic and overseas markets across the board in stocks, bonds and deposit accounts according to their particular objectives.
“Up to 70 per cent of the investment [portfolio], I suggest, should be domestic, and the rest overseas, as we now see the European market recovering,” Somjin said.
