Starting with the key question
Why invest at all, when bank deposits carry no risk?
Because money left idle has a silent enemy called inflation. Prices rise every year. If your money grows more slowly than inflation, your purchasing power steadily erodes without you noticing.
The problem
- Inflation averages about 2–3% a year, and medical costs rise far faster
- Deposit rates are often below inflation, so the money in your account buys less every year
- Most people lack the time to follow the markets, choose unsuitable funds, or sell in a panic when markets fall
- If the unexpected happens along the way, the family’s savings plan stops halfway
The solution
- Start investing early so compounding has time to work, and invest consistently every year
- Diversify globally in portfolios rebalanced by specialists
- Choose instruments that outpace inflation and suit your risk tolerance
- If you are not yet ready for volatility, you can begin with a capital-guaranteed plan such as Global Savings Plus
How much does 3% annual inflation erode your money?
The purchasing power of THB 1,000,000 today in future years
| Period | THB 100,000 today will be worth | Lost | THB 1,000,000 today will be worth | Lost | An item costing THB 100,000 today will cost |
|---|---|---|---|---|---|
| In 5 years | 86,261 | −13,739 | 862,609 | −137,391 | 115,927 |
| In 10 years | 74,409 | −25,591 | 744,094 | −255,906 | 134,392 |
| In 15 years | 64,186 | −35,814 | 641,862 | −358,138 | 155,797 |
| In 20 years | 55,368 | −44,632 | 553,676 | −446,324 | 180,611 |
| In 25 years | 47,761 | −52,239 | 477,606 | −522,394 | 209,378 |
| In 30 years | 41,199 | −58,801 | 411,987 | −588,013 | 242,726 |
In 20 years, THB 1 million today will buy only about as much as THB 550,000 today. To preserve purchasing power, your money must grow at least as fast as inflation; to grow your wealth, it must grow faster.
Compound calculation at constant 3% annual inflation, for illustration
Capital-guaranteed savings
Global Savings Plus — capital guaranteed, plus the opportunity for returns linked to a global index
Guaranteed cash payments every year and a maturity payout exceeding the premiums paid, plus additional returns linked to the Citi Grandmaster RC 5 index, which is diversified across global equities and bonds. Historical average 4.11% a year, volatility 4.09%.
Historical performance of the Citi Grandmaster RC 5 index
Average annual return4.11%
Volatility4.09%
Sharpe ratio1.01
DiversificationUS, European and Japanese equities, government and corporate bonds, gold, silver, oil
The index rebalances automatically to control volatility. Data before December 2022 is simulated (backtested). Past performance is not indicative of future results.