Top investors how to find returns? During the market, it's not going anywhere.

From the beginning of the year until today it has been almost half a year. 2024 The Thai stock market remains one of the stock markets whose returns are very disappointing.

With a YTD return of -3.18% and a YTD return of -9.51% (May 22, 2024), it can be seen that it is another challenging year for investing as the market is still sideways, has no direction and there is no positive momentum to help push the market.

In this situation nowadays, the investment world has investment products that cater to a depressed market that is not going anywhere. Investors can still generate cash flow from monthly interest at a rate of return of about 8-15% per annum, i.e. a fixed coupon note or FCN is an investment instrument that provides investors with a buffer in the price environment that may decline by 10-15%, but investors who invest At FCN they will not lose their money. If the stock price does not fall below the price, Knock In is a tool that helps manage investment portfolios in unfavorable market conditions.

Using the FCN tool is similar to this. We are armed with swords and shields to deal with ambiguous situations. The magic of investing in FCN is that investors can retain interest and achieve desired returns depending on the assignment of the underlying shares. Including creating a Knock In price framework helps prevent downside risk to some extent if you are concerned that the stock price has a chance to fall or contract sharply. We can price a deeper Knock In, which is like a thicker protective shield. However, the higher you set the Knock In rate, the lower the interest you automatically receive. So, how can we set the Knock In price at a suitable level? Obtaining interest at a satisfactory and reasonable level

Identifying the Knock In Price Limiting Strategy in a situation where the stock price has already fallen to a certain level and then rebounded will show that the stock price has support. Which was the lowest point in the previous period when the stock price fell. Investors who invest in FCN may use a strategy to set the Knock In price below the previous support price. With the opinion that if the stock price falls in this round the price is likely to rebound at the support level. (not achieving new lows)

Example of OSP stock price (as of May 21, 2024)

From the example, we can see that the OSP stock price has fallen over the past year, and the price has made a double bottom at the support price of about 18.40 – 18.50 baht. At this price, the stock movement body bounced again and we can use the price of 18.30 baht as support this time. If you notice the medium-term trend of stock prices, the stock price is still in a sideways range, and is moving within the range.

By investing in FCN, we can design the Knock In price to be close to or below the support level. In our example, we set the Knock In level at 85%, which means the stock price can drop to 18.36 baht, which seems to be a reasonable price range for the stock to adjust. Risk can also be reduced if we see that if the stock price falls this time, it will not be below the recent support level. For FCN, for 6 months on OSP shares, the interest is around 7% per annum, with investors being able to choose to receive interest, you can do this monthly. Or every two weeks on your own.

If interpreted in a comprehensive manner, we may use FCN as a tool to generate monthly or bi-weekly cash flow on an ongoing basis. Without having to turn on the screen to learn about stock trading timing yourself. Especially in the case of the SET market, our country has been moving sideways for half a year now. There is also a Knock In feature that is like an investment shock absorber that causes stocks to fall during the FCN contract, but as long as the underlying stock price remains above the Knock In price, investors will not suffer any loss. Because of the shock absorber that supports it. Read FCN's investment mechanism in detail here.

However, FCN products are tools without basic protection. Investors should understand the terms of returns and risks and should seek additional advice from an investment advisor before deciding to invest. For further information, please contact your investment advisor or BLS Customer Service on 0 2618 1111.

Leave a Reply

Your email address will not be published. Required fields are marked *