Tech shares best buy for long-term returns, say fund managers
Fund managers are advising investors to buy tech shares for long-term returns in line with global trends.
Tech shares have generated the highest returns in the previous year even though their prices are likely to move in a narrow range this year.
Thanavut Pornrojnangkool, chief investment officer at Bangkok Capital Asset Management (BCAP), said tech shares have generated significant returns despite volatility from the Covid-19 outbreak.
"We recommend investors to buy small- and medium-tech shares that have gained from disruptive technology, such as Alibaba and Tencent, instead of large US tech shares, like Google and Apple, as their prices have limited growth potential," he said.
He said the company will focus on investments in line with global trends such as disruptive technology, environment, healthcare, and lifestyle, adding that BCAP will launch new funds in the second quarter of this year.
Isara Pudtalsri, chief executive officer of We Asset Management said tech shares would generate long-term returns as the internet technology still has the potential to grow in line with business and society.
He added that the We Next Generation Internet Fund, which focuses on generating returns from internet technology, will be offered until January 28.
"We recommend investing in Tesla, Roku and Square," he added.
Jumpon Saimala, chief executive officer of Principal Asset Management, said investing in shares linked to rapid growth in technology will help generate long-term returns.
He recommended investing in the Principal Global Opportunity Fund, which covers shares with growth potential amid disruptive technology, such as Amazon, DSV and Hermes.
"The fund's return last year was 52.91 per cent, while returns in the past three years were 21.84 per cent annually," he added.