Bangkok: In today's rapidly changing financial world, investors are constantly seeking new opportunities and strategies to generate superior returns. Veterinarian Thanat Siriwarangkul explained in the program "Knowing How to Use and Understand Money," highlighting interesting aspects of unique investment strategies, both historically and in the present day, reflecting the evolution of financial instruments that we should understand before making investment decisions.
According to Thai News Agency, the Tontine Fund is a concept with historical roots extending over 300 years. In this model, investors contribute money to a central fund, with surviving members receiving shares from the deceased participants' contributions. Although ethical concerns and conflicts of interest led to its decline, the concept has been revived and adapted in countries like Canada, where it is now known as the Purpose Longevity Pension Fund. This modern iteration aims to address aging society trends and serve as a retirement tool that encourages longevity.
The Obesity ETF represents another intriguing investment theme, focusing on the growing demand for medicines targeting non-communicable diseases. The diabetes and obesity drug industries have become high-growth sectors. Successful examples include ETFs investing in major pharmaceutical companies such as Eli Lilly and Novo Nordisk, which achieved a 28% return over the past year. However, investors must recognize the high risk associated with this niche market, particularly if companies lack innovation or encounter specific negative factors.
Moreover, the story highlights the potential pitfalls of fund fees. Investors often overlook the impact of fees, especially with complex term funds or trigger funds. High fees compared to expected returns can erode potential profits. Therefore, it is essential for investors to review all expenses thoroughly before committing to an investment.
Investing involves more than just seeking maximum profit; it requires a comprehensive understanding of assets and conditions, whether exploring modern investment trends or niche funds. Discipline, thorough research, and monitoring macroeconomic factors like interest rate trends and central bank policies are crucial for sustainable and secure financial planning.