InnovestX suggests adjusting the investment portfolio to take advantage of rising bond yields, and revealing seven interesting funds for investors during easing monetary policy cycle, ranging from high-quality bonds, fast-growing Vietnam stock, all the way to skyrocketing gold prices.
InnovestX Securities (INVX) reported that bond yield has risen to its highest level in years, making this a golden opportunity to add high-quality bonds into a portfolio and strengthen growth. The firm has selected seven attractive funds for investment as follows:
- United Global Income Strategic Bond Fund (UGIS-N) (Class-R): It is recommended due to rising bond yields to the highest level in years, while also having diversification that would be necessary in the future
- Asset Plus U.S. Small Cap Focus Fund (ASP-USSMALL) (Class-A): The fund is expected to recover to profitability due to the Federal Reserve’s rate cut, making the price at an interesting rate.
- Principle Vietnam Equity (PRINCIPAL VNEQ-A): The fund plans to invest in equity instruments that have been registered in a stock exchange, or have core business in Vietnam that has potential growth, as Vietnam’s economy grew stronger, the performance is expected to continuously expand, while valuation is relatively low.
- Bualuang Gold Fund (BGOLD): The main fund is SPDR Gold Trust, which is a foreign mutual fund that has a policy of gold investment, generating yield for the fund after deducting fees and costs. BGOLD has profited from the lowering bond yield and political instability in the U.S. supporting gold prices, at the same time, lowering the rate would also benefit the gold price.
- AF US Wide MOAT Fund Hedged Fund (AFMOAT-HA) (Class-A): The fund is expected to receive support from a better-than-expected performance, strong U.S. economy, lowering rate that has a positive effect on stocks, and seasonality period that the U.S. stock exchange usually turns a good yield.
- KTAM World Gold and Precious Equity Fund (KT-PRECIOUS): After gold price shows signs of strong growth and continues to reach new peaks, as usually, the gold mine stock will have more liquidity than gold prices, resulting in gold mine stock receiving benefit from increasing gold prices.
- Krung Thai High Dividend Equity Fund (KT-HiDiv-A: The fund is supported by the Vayupak Fund and government economic stimulation measures.
