Swedes may opt for Thailand as well as gold amidst uncertainty
It is no surprise that funds invested in gold were among the best performers in the Swedish funds market through July, but surprisingly so too were Thailand funds.
According to business publication Privata Affärer, figures from Morningstar suggest that during July the top four performing funds in the Swedish market were invested in the Asia country specifically. Another two of the top-10 performers through the month invested more broadly in the Asian region.
Thailand funds made strong gains through 2009 into 2010. Earlier this year they fell away, but have made gains again since May, Privata Affärer notes. However, many Swedish investors would have missed these latest gains because net redemptions from these funds continued in May and June, according to figures from industry body the Swedish Investment Fund Association.
Privata Affärer quotes online bank and broker Avanza saying that markets such as Indonesia, Korea, and even Japan have been attracting younger investors through the summer. They may want to jump on the Thailand fund bandwagon in light of the latest monthly performance figures, but Avanza warns that they need to remember the longer term history of performance such funds provide, as well as the associated fees and other costs.