A COMPARATIVE STUDY OF RETURN AND RISK OF TRIGGER FUND AND EQUITY FUND IN THAILAND

Abstract

The study aims to compare return and volatility in trigger fund and equity fund in Thailand by using 2 groups of the data. To clarify, the first group is for the trigger fund using 12 active funds, also namely 12 groups, and the second one is for the equity fund using 69 funds which are then classified into 9 groups having two similar criteria, sizes and time periods observed, as the first group. Following this, each group from both trigger fund and equity fund are compared within such same criteria ones and the return of each group is also compared to a benchmark, SET Index.  On top of that, the study is measured by Jensen’s Alpha, Treynor’s Index and Sharpe’s Index so as to analyze whether the trigger fund performs higher or lower return and volatility comparing to the equity fund and the market.

To summarize, most of the trigger fund, seven groups, produce return below the market. Furthermore, if the return and volatility in each group are thoroughly considered, it can be said that the return of most equity fund is higher than the trigger fund, and the volatility of equity fund is lower than the trigger fund. Ultimately, I hope this study would be considered as useful information for those who are going to invest in either trigger fund or equity fund.