Many people ask, "I want to start investing but don't know how to begin." In fact, regardless of experience or capital, everyone can build wealth through a tool called a mutual fund. Today, I will guide you to understand what a mutual fund is, what types there are, and recommend 10 funds that I think are worth watching in 2026 so you can confidently start building wealth.

To explain simply, a mutual fund (Mutual Fund) is like many individual investors pooling their money together into a big pot, then entrusting it to professionals called fund managers who work at asset management companies (AMCs). These managers invest that money in various assets according to a set policy.

When we invest, our money is converted into units called Units, each with a value called NAV (Net Asset Value) or net asset worth. This value is calculated and announced at the end of each trading day, reflecting the performance of the assets held by the fund. If the assets increase in value, the NAV rises, and that is our profit.

Who is a mutual fund suitable for? The answer is almost everyone, especially:

For beginner investors with no experience, investing through mutual funds is like having a personal expert advisor. For those without time to follow economic news, the fund manager does that for you. And for those wanting to diversify risk, the principle of "don't put all your eggs in one basket" applies. Mutual funds help you spread your investments across various assets, even with a small amount of money.

Some types of mutual funds, such as SSF, RMF, or ThaiESG, are designed to offer tax deductions under certain conditions. Because of their large capital base, fund managers have bargaining power and access to investment opportunities that retail investors cannot easily reach, such as IPO subscriptions or private corporate bonds.

The world of mutual funds is highly diverse and can be categorized as follows:

By asset type: Money Market Funds (lowest risk, suitable for short-term cash holding), Bond Funds (low to moderate risk), Equity Funds or Stock Funds (high risk but higher returns), Balanced Funds (adjust asset allocation based on market conditions), and Alternative Asset Funds (gold, real estate, etc.).

By special policy: Index Funds and ETFs (passive investing tracking an index), Industry Funds (focusing on a specific industry), International Funds (access to global markets), and Tax-Exempt Funds.

Choosing the 'right' mutual fund may seem complicated, but with a systematic selection process, it becomes manageable.

First, clearly assess yourself: What are your investment goals? How long is your investment horizon? What level of risk are you willing to accept? Second, review the investment policy via the fund's Fund Fact Sheet to understand what the fund invests in and in which countries. Third, analyze in-depth data: look at past performance (but remember, past performance does not guarantee future results), maximum drawdown (the worst loss experienced), Sharpe Ratio (investment efficiency), and total expense ratio (TER), which is very important over the long term.

For 2026, the overall economic outlook is seen as a "year of two halves," with the first half potentially volatile but expected to recover better in the second half. A key megatrend is the AI revolution, creating huge demand in energy, infrastructure, and hardware.

Based on this overview, I have selected 10 interesting mutual funds:

Thai stocks (dividend): SCBDV (Siam Commercial Bank) invests in large Thai stocks that pay regular dividends, suitable for cash flow needs. KFSDIV (Krungsri) combines stocks of various sizes for greater growth opportunities.

Foreign stocks: KT-WTAI-A (K-Asset) invests through a main fund focusing on AI with leapfrog growth potential. B-INNOTECH (Bualuang) invests in global technology. PRINCIPAL VNEQ-A invests in promising Vietnamese stocks.

Bond funds: KTSTPLUS-A (Krungthai) invests in quality short-term bonds, suitable for cash holding and risk reduction.

Mixed funds: TISCOFLEXP (TISCO) flexibly adjusts asset proportions based on market conditions.

Thematic funds: KFCLIMA-A (Krungsri ESG Climate Tech) invests in companies solving climate issues. K-GHEALTH (K-Global Healthcare) invests in leading global healthcare companies. ASP-THAIESG (Asset Plus) invests in Thai stocks with strong ESG profiles.

Advantages of mutual funds: risk diversification, professional management, high liquidity, low minimum investment, and a wide variety of options. Disadvantages: fees, lack of direct control, dependence on the manager’s skill, and dividend taxation.

Mutual fund fees are divided into two parts: fees charged directly to investors (sales fee, redemption fee, switch fee) and hidden fees embedded in NAV (management fee, custodian fee, registrar fee). The total is shown as TER, an important figure to compare, because a 1% difference over 20-30 years can significantly impact your final portfolio value.

In summary, mutual funds are powerful investment tools that are accessible and suitable for investors of all levels. For 2026, filled with challenges and opportunities, building a portfolio aligned with megatrends through mutual funds will be a key to long-term wealth creation.