K WEALTH, from Kasikorn Bank, highlights that Thailand is experiencing the highest inflation crisis on record, which is diminishing the value of money in consumers' pockets. They suggest investment strategies to increase the chances of returns that outpace inflation by gradually investing through Dollar Cost Averaging (DCA) in interesting mutual funds such as K-CHANGE, K-CLIMATE, and K-GINCOME. Additionally, investing in gold at a ratio of 5-10% of the portfolio can help diversify risk, or one can use Wealth PLUS, an automated investment planning service on K PLUS, to manage investments effectively.

Mr. Veerapol Bodeerat, Senior Director of Customer Consulting Development and K WEALTH GURU at Kasikorn Bank, stated that Thailand's inflation rate has reached 5.3%, the highest in 13 years, directly impacting the purchasing power of consumers. Income growth is not keeping pace with expenses, and businesses are seeing profit margins shrink as they cannot raise prices quickly enough to offset rising costs, especially for downstream businesses close to consumers.

The main causes of the current inflation are: 1) Insufficient production capacity to meet market demand due to COVID-19, which temporarily closed many factories, while demand for goods and services has increased as the economy gradually recovers; 2) Rising business costs due to oil prices and the trend towards clean energy, which also increases costs by reducing fossil fuel usage; 3) The ongoing conflict between Russia and Ukraine, which has kept oil prices high due to the loss of Russian oil production, as Russia is one of the largest exporters of natural gas and oil, accounting for about 10% of global oil production. Additionally, the OECD predicts that if unrest continues, global inflation rates could rise by 2.5%.

In terms of investment, K WEALTH recommends gradually investing through DCA to reduce return volatility. The following mutual funds are interesting and have the potential to provide returns that outpace inflation:

  1. K-CHANGE: A fund focused on environmental sustainability, with a portfolio of high-growth stocks that have recently seen price declines, making them attractive while still having significant future income growth potential. This fund is also less affected by long-term inflation as its companies are market leaders capable of raising product prices in line with economic conditions.
  2. K-CLIMATE: A mutual fund themed around alternative energy, which has high long-term growth potential driven by global mega-trends as governments, private sectors, and citizens increasingly focus on environmental protection and addressing climate change for sustainable development.
  3. K-GINCOME: A mutual fund that diversifies risk by investing in over 2,500 global assets for portfolio stability, focusing on assets that generate consistent income, such as bonds, dividend stocks, real estate funds, and more, allowing for regular returns to investors.

Investors can also invest in gold to diversify risk, with a recommended allocation of no more than 5-10% of their portfolio. For those who do not have time to follow news and adjust their investment plans themselves, Wealth PLUS offers an automated investment planning service on K PLUS to manage investments. Wealth PLUS features an intelligent system with international standards that helps design investment plans, select suitable funds based on risk, and automatically track and adjust investment plans throughout the user's investment period.

In addition to investment, K WEALTH also recommends financial management strategies for those with loan obligations who may be affected by rising interest rates. They suggest gradually paying down principal. For those with home loans, refinancing is advisable when the interest rates of new financial institutions are at least 2% lower than current rates to make refinancing worthwhile.

For those who do not want to miss out on valuable financial knowledge and good investment opportunities, they can follow K WEALTH on the LINE Official Account of “KBank Live” or visit www.kasikornbank.com/kwealth.