Diversifying portfolios across various asset classes is crucial for investors to navigate risks and smooth out volatility amid growing global market uncertainties, says Kasikorn Asset Management (KAsset).
“Over the years, we have faced numerous unexpected challenges, from natural disasters to global policy shifts such as the Trump tariffs and the US government shutdown,” said KAsset executive chairman Win Phromphaet, underscoring the importance of building stable and diversified portfolios that balance stability with long-term growth potential to withstand all market conditions.
“We cannot predict the market, but we can prepare our portfolios. The key lies in diversification, across both geography and asset classes, to ensure resilience against any possible scenario,” he told KAsset’s “Know the Markets Summit 2025” held jointly with JP Morgan Asset Management.
Mr Win said most Thai investors still have an overly domestic bias, with more than 95% of retirement assets concentrated in Thai equities and bonds.
“This means they are missing out on the benefits of global diversification,” he said.
“If you invested only in Thai equities this year, your portfolio might have contracted, but global diversification delivered positive returns.”
Panodphol Tantawichian, chief investment officer of KAsset, shared a similar view, noting active diversification is essential, especially amid market volatility and as Thailand’s economic indicators “remain mixed with modest growth”.
Building on its success with retail clients, KAsset expanded its core portfolio strategy to the provident fund market to help Thais achieve better retirement outcomes.
The company’s provident fund members can choose from various core portfolios tailored to different life stages, with high-risk options available for young investors, while low-risk portfolios cater to those nearing retirement, he said.
Tanandon Cholitkul, another chief investment officer at KAsset, said fixed income remains a vital tool for portfolio diversification and volatility reduction, especially during turbulent market conditions.
“A well-constructed portfolio should aim to minimise fluctuations while maximising returns,” he noted.
“We recommend a hybrid investment approach, combining Thai fixed income with selective global equities to help cushion against market swings.”
To achieve a better balance, the firm recommends an 80/20 portfolio strategy, allocating 80% to a globally diversified core portfolio and 20% to a satellite portfolio, allowing investors to overweight specific themes such as Chinese or Indian equities as well as gold based on personal outlook.
To navigate turbulent conditions, KAsset executives said a core portfolio should prove its strength during times of extreme volatility.
“If this were a football match, we are now looking to bring in fresh players to strengthen our defence and prepare for an aggressive offence. Our strategy is to be strong and smart, playing the long game,” said managing director Wajana Wongsupasawat.