Private Fund

What is a private fund ?

Private Fund are funds that any person, faculty, person or entity With the objective of investing in various types of securities Assigning management companies or financial institutions that are authorized to manage private funds as investment managers With mutual understanding between the management company and the investor regarding the investment policy Financial goals Demand, return and investment period By creating a contract of agreement between the management company and the investor.

Investor properties

Investments in private funds may come from types of investors. “Individual” or “Juristic person” can be, but must be an investor with all Thai citizenship Or are all foreign investors only (The mutual fund therefore has nationality according to the nationality of the investor. Therefore, it is not possible to invest money from Thai investors together with foreign investors). At least 2 persons, but not more than 9 people.

Private funds are protected by laws and organizations

Private fund management business Under the legal framework under the Securities and Exchange Act BE 2535 and under the supervision of the Securities and Exchange Commission (SEC)

The structure of private funds


Private fund investment policy

Due to private funds Is a fund management under the agreement between investors and management companies Making private funds available Various investment policies And investors can change the investment policy as needed. However, for the best interest of investors under the appropriate risk Before hiring a private fund manager The management company will request customer information about the financial position. Financial burden Investment time Investment experience Acceptable risk level and expected return To get to know the status of the customer (Know your customer) and use the information that has been analyzed to determine the investment policy suitable for the customer (Suitability) before setting investment policy. For example, the current investment policy of popular private funds is

Investment policy Proportion of investment in debt instruments and other debt-like instruments The proportion of investment in equity instruments and other instruments that are similar to equity Expected return
Expect the least return (Conservative) 80-100% 0-20% Higher than interest on deposits
Expect moderate returns (Moderate) 40-60% 40-60% Expect moderate returns, moderate risks Conservative
Expect high returns, high risks (Aggressive) 0-20% 80-100% Higher than the investment policy Aggressive

Expect Less Returns


Expect Moderate Returns


Expect High Returns


Debt instruments and debt instruments
Equity instruments and equity-like instruments

Tax burden of private funds

Tax at the normal rate according to the type of investor and the nature of the investment instrument

Private Fund How is it different from mutual funds?

Private fund assets are not allocated as investment units like mutual funds. Investors only need to use the existing investment funds for the management company to plan and manage the investment as appropriate for themselves. Therefore, the ownership of the assets or the fund is owned by the investor. The property owners name is the name of the investor. But the name of the management company will be specified along with To make clear that the property of the investor is managed by the management company

The return on investment in private funds may also be subject to tax as the owners status. (That may be either a natural person or a juristic person), for example, if you are an individual and a private fund, invest money in debt instruments that receive interest as interest The interest received must be taxed normally. (But if it is a mutual fund, when investing money and receiving returns in the form of dividends or interest Will be exempt from taxation)

Investors in private funds should have a good understanding of investment. In order to have an understanding of the investment policies presented by the fund manager And can jointly set up investment policies that are suitable for themselves

Benefits of investing in private funds

  • Increase investment opportunities directly than investing in securities directly And investments can spread risks more than direct investment By using a professional fund manager team to select and allocate investment funds for investors
  • Privacy And is more flexible than investing in general mutual funds The investor is the policy maker in conjunction with the fund manager. And can change the investment policy according to their needs And can cancel the contract at any time (Must notify written termination request only)
  • Can access investment details closely As if investing by yourself
  • Management companies will always find opportunities to invest in new instruments that provide high returns, such as instruments offered in the first market, etc.
  • Have more bargaining power from the management of mutual funds
  • Reduce the burden of contacting financial institutions Monitoring news and self-management


Private Fund Marketing Department XSpring Asset Management Company Limited
Call. 02-030-3730