Krungsri Asset Management launches 2 RMF funds investing in Nasdaq 100 – emerging markets

Krungsri Asset Management launches 2 RMF funds for portfolios focusing on generating returns, capturing important growth opportunities from the rising star index, Nasdaq 100, and emerging markets group excluding China, offering for the first time on 21-27 November.

Ms. Supaporn Leenabanjong, Managing Director of Krungsri Asset Management, revealed that the company has launched two new RMF funds: KFNDQRMF and KFEMXCNRMF.

This is because investing in NASDAQ 100 stocks is seen as benefiting from President-elect Donald Trump's policies, such as tax cuts for technology companies, reduced government regulation, and support for investment in innovation and infrastructure, which will boost the profits of NASDAQ companies and promote the growth of the technology and innovation sectors in the long run.

In addition, investing in emerging markets is another interesting investment option due to the high economic growth rate and positive factors from government policies, such as measures to promote consumption, government investment, relaxation of business regulations, tax measures, infrastructure development, etc., which will have a positive effect on the growth of the stock market in each country, including support from the movement of capital from foreign investors flowing into emerging markets.

The Krungsri NDQ Index Retirement Fund (KFNDQRMF) invests through the Invesco NASDAQ 100 ETF, aiming to generate returns that closely mirror the NASDAQ-100 index, approximately half of which is in the technology and innovation sector. The positive investment climate and technological and innovative advancements have made many companies in the portfolio rising stars of the decade, with continued growth potential.

The fundamentals of the Magnificent 7 stocks, including Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla, are also strong drivers, and the earnings per share (EPS) of the Magnificent 7 stocks continue to grow, supported by increased spending by businesses in Generative AI.

Over the past 10 years, companies in the Nasdaq-100 have grown revenue, profits and dividend payouts significantly higher than other US stock indexes.

In addition, the main fund uses a defensive investment strategy that aims to provide returns close to the index, giving the fund the advantage of high liquidity and low fees. (Source: Nasdaq, Invesco as of 31 Dec 66)

The Krungsri Emerging Markets ex China Index Retirement Fund (KFEMXCNRMF) provides access to investment opportunities in emerging markets (excluding China). Its investment policy focuses on the iShares MSCI Emerging Markets ex China ETF, one of the leading Emerging Markets ETFs, boasting a large fund size and high liquidity compared to other Emerging Markets ETFs in the market.

For emerging market countries, their economic growth is high compared to many developed countries. Therefore, not investing in China due to its market size and economy, which account for a significant portion of emerging markets, isolate investment in China from the group to increase the flexibility to adjust the portfolio more effectively, as well as help spread the risk and reduce the volatility of investing in Chinese stocks.

The investment portfolio of the main fund is diversified into several countries with outstanding growth factors, growth opportunities from structural changes in terms of population base, economic growth, and being an important production base for many industries related to AI and technology such as semiconductors, datacenters, etc. The countries with the highest investment proportions in the portfolio are India, Taiwan, Korea, and Brazil.

India has the potential to grow due to its large population base, especially in the working age group, which is good for economic growth. The proportion of working age people to the total population is expected to surpass China by 2573.

Taiwan and South Korea also have a share of GDP tied to the advancement and demand for AI and technology. In addition, Taiwan is a major chip manufacturer in the world, so there is a lot of room for growth in the long term.

While Brazil is a major producer of agricultural products and a major exporter in the global market covering Asia, Europe and America, and if considering the price level of Emerging Markets ex China, it is still not expensive when compared to the global stock market, including the forecast of income of the AI ​​Semiconductor group has a chance to increase significantly.

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