Overview of the ES-SET50ACC2 Fund
The ES-SET50ACC2 Fund is a passive equity fund that tracks the SET50 Index, which consists of the 50 most significant and actively traded stocks in Thailand. By mirroring the performance of this index, the fund provides investors with a diversified and stable way to participate in Thailand’s economic growth.
One of the key features of the fund is its accumulation structure, meaning that rather than paying out dividends, the fund reinvests earnings back into the portfolio. This allows investors to benefit from compounded growth, making it an ideal choice for long-term investment strategies, such as retirement planning or wealth accumulation.
Objectives and Investment Strategy
The primary objective of the ES-SET50ACC2 Fund is to achieve long-term capital growth by closely replicating the performance of the SET50 Index. The fund employs a passive investment strategy, meaning that instead of actively selecting stocks, it aims to hold a portfolio that mirrors the composition of the SET50 Index.
Key Elements of the Fund’s Strategy:
- Index Tracking: The fund aims to match the returns of the SET50 Index, which represents Thailand’s largest and most established companies.
- Diversification: Investing in 50 leading companies across multiple industries, reducing exposure to risks associated with any single stock.
- Accumulation (No Dividends): Earnings from dividends and capital gains are reinvested into the fund, enhancing the potential for compounded growth.
Lower Costs: Passive funds often have lower management fees compared to actively managed funds, making them a cost-effective investment choice shutdown123