"ABC Plc. offers a 3-year corporate bond with a fixed interest rate of 3.20% per annum, paying interest every 6 months. The issuer's credit rating and debentures are at the A level. When seeing this information, really want to buy the debentures right now.

But after reading the conditions on the next line, it must be immediately withdrawn. "Offering to institutional investors and/or large investors, book a minimum of 1 million baht" The question is if being an individual investor and just started working, have only a thousand-baht investment per month. How can they have a chance to own a corporate bond?

Corporate Bond is a debt instrument issued by a private company. (If debt instruments issued by the government and state enterprises are called bonds). To raise funds for use in various operations, such as expanding business, building factories, buying equipment, etc. The corporate Bond is divided into units. Each unit has the same value, which in Thailand usually determines the value of the debentures, 100 baht per unit, and 1,000 baht.

Next is called the secondary market. After buying the bond in the first market and want to sell before maturity. Investors who buy bonds in the first market can also sell them in the secondary market. And if other investors Interested in buying, must contact through a commercial bank or a securities company that has a securities trading license (SEC) from the SEC.

At present, the debentures have been popular with investors continuously.
One of the important factors is the exact return at a higher rate than bank deposits. And when purchased, can sell (change hands) every business day. Including choosing according to needs because there are many debentures such as 3-year-old, 5 years old, 10 years old, etc. Importantly, debentures have a lower risk than investing in derivatives, stocks, and stock funds. Therefore, is another choice for those who want to return regularly and take risks at a low level.

However, most of the bonds offered for sale in the market usually require a relatively high purchase price, such as 50,000 baht, 1 hundred thousand baht, 1 million baht or more, in the case of sales to major investors or institutional investors.

So, there is a question that those who do not have much to invested in each month, for example, 1,000 baht, but want to buy bonds. The answer is they can invest through fixed income funds. Managed by the asset management company.

The advantages of investing in bonds through fixed-income funds are can be traded every working day or can be held for long-term investment, not much money to invest, so convenient to manage money. At the same time, each fund will invest in many debentures causing good risk diversification.

However, the fixed income fund does not have the policy to invest in all bonds. (Some funds invest only in government bonds) Therefore, must first consider whether any fixed income fund has the policy to invest in bonds by visiting the information in each fund prospectus.

1. Medium-term long-term debt fund: have the policy to invest in domestic debt instruments both government bonds and debentures. Therefore, before deciding to see how the fund has a proportion of investment, such as 60% bonds, 30% government bonds, and 10% deposits or some funds may invest in almost 100% bonds. Which sees the proportion to know how much they want to invest in bonds.

2. Foreign Fixed Income Fund: have the policy to invest in foreign debt instruments both government bonds and debentures. In addition to looking at the investment proportion, must-see which country to invest in debt instruments. And the investment model is the way the money is invested to invest in one foreign debt fund (Feeder Fund) or to invest in several foreign debt funds (Fund of Fund). 

At the same time, due to foreign investment, therefore, the risk that investors must accept is currency exchange rate fluctuations. Which some funds will prevent the risk to 100% while some funds do not have. In addition, the risk that arises from the situation within the country in which the fund invests. Therefore, must study various conditions thoroughly, such as investment policy, details of foreign debt fund, various fees, etc.

3. Mixed funds have the policy to invest in both stocks, government bonds, debentures, and other assets such as gold and deposits. Therefore, it may not answer the investor who wants to focus on investing in bonds. But suitable for those who want to diversify risks in a highly flexible manner.

Although the investment of bonds through mutual funds will have a variety of benefits such as low investment, good risk diversification, convenience, including having a fund manager to look after investments and closely tracking investment information. But before deciding to invest, must study the information thoroughly. Because the importance of investing in fixed income funds is risk and investment policy. Because debt instruments are related to the policy interest rate direction If choosing the correct investment timing Will to make the success of investment stable