Kasikorn Asset Management (K-Asset) has emerged as a market leader in Thailand’s mutual fund industry, capturing more than half of total net inflows this year-to-date to drive its assets under management (AUM) close to 1.8 trillion baht.
Executive chairman Win Phromphaet said the company captured inflows of 134 billion baht this year, representing about half of the entire industry’s inflows. The increase was driven primarily by fixed-income funds, which attracted strong demand amid persistently high interest rates.
By year-end, total inflows could reach 170 billion baht, pushing K-Asset’s AUM beyond the 2-trillion-baht milestone, he said.
K-Asset sees signs of stabilisation for Thai equities over the next six months, supported by a rebound in GDP growth and a bottoming out of corporate earnings revisions.
K-Asset projects the Stock Exchange of Thailand (SET) index to finish in a range of 1,300-1,340 points this year.
“While structural challenges, such as demographics, competitiveness and governance, still weigh on long-term growth, near-term sentiment is improving thanks to fiscal stimulus, reduced political risk and tax incentives,” said Mr Win.
He said interest rate policy will remain a key driver for stock market growth. K-Asset expects Thai policy rates to decline by 50 to 75 basis points (bps) over the next 12 months, with the upcoming Monetary Policy Committee meeting on Oct 8 proving pivotal. If rates are cut later than expected, such as in December, the market could respond positively, with each 25-bps cut potentially lifting the SET index by around 40 points, said Mr Win.
K-Asset continues to recommend high-dividend equities, particularly in the banking and energy sectors. The six largest banks and two smaller players offer dividend yields of about 8%, while major energy firms are delivering 6.3-6.5%.
“Historically, dividend-focused stocks have consistently outperformed the broader market,” he said, adding a new government and proactive policies on household debt are expected to further benefit these sectors.
Despite slow economic growth, dividend stocks remain a stable source of income. Average total returns from Thai equities are projected at 5% annually, with dividends contributing around 4%, noted K-Asset.
“Dividend-paying equities can help balance portfolios, generate consistent income, and protect value in a low-growth environment,” said Mr Win.
Long-term bonds have offered yields of 8-10% in 2025, making them particularly attractive to investors wary of the sluggish performance of domestic equities. However, K-Asset expects yields to normalise over the next 6-12 months.
“Bond yields could fall to around 3-4% once the interest rate downcycle takes hold. Investors should adjust their portfolios according to their risk appetite,” said managing director Wajana Wongsupasawat.
With bond returns likely to soften, there may be opportunities to diversify into other risk assets, including foreign equities and fixed income abroad, he said.