A quick reference for the most important financial terms used on SmartBaht. Each definition is kept simple and practical — click the links to read the full article.
Asset Anything of financial value that you own — cash, stocks, bonds, property, or funds. In investing, the goal is to grow your assets over time.
Asset Allocation How you divide your money across different types of investments (stocks, bonds, cash, real estate). Your allocation determines both your potential returns and your risk level.
Baht (฿) The official currency of Thailand, issued by the Bank of Thailand. All SmartBaht calculators and examples use Baht.
Bond A loan you give to a government or company. In return, they pay you regular interest and return your money at the end of a fixed period. Generally lower risk and lower return than stocks. → Bonds Explained
Broker / Brokerage Account A company licensed to buy and sell investments on your behalf. You need a brokerage account to invest in stocks, ETFs, or funds. → How to Open a Brokerage Account · Broker Comparison
Cash Balance Account A type of brokerage account where you deposit money first and can only trade up to that balance. The most common account type for beginners. → How to Open a Brokerage Account
Compound Interest Earning returns on your returns — not just on your original investment. Over time, this creates an accelerating growth effect. The longer you stay invested, the more powerful it becomes. → Compound Interest Explained · Compound Interest Calculator
DCA (Dollar-Cost Averaging) Investing a fixed amount at regular intervals (usually monthly), regardless of market price. This removes the pressure of trying to time the market and smooths out the average purchase price over time. → Dollar-Cost Averaging Explained
Depreciation The loss of value over time. Most commonly used for cars and physical assets — a new car loses 15–20% of its value in the first year alone. → The Real Cost of Buying a Car
Diversification Spreading your investments across different assets, sectors, and regions to reduce the impact of any single investment performing poorly. The principle of not putting all your eggs in one basket. → Diversification Explained
Dividend A payment made by a company to its shareholders, usually from profits. Some ETFs distribute dividends (distributing), while others reinvest them automatically (accumulating). Subject to 10% withholding tax. → Stocks Explained
DR / DRx (Depositary Receipt) A Thai-listed security that represents ownership in a foreign stock or ETF. DRx is the fractional version — allows small Baht-amount investments in international assets through a Thai brokerage account. → How to Open a Brokerage Account
Emergency Fund Money set aside to cover unexpected expenses — job loss, medical bills, or urgent repairs. Typically 3–6 months of essential living costs, kept in a savings account (not invested). Should be built before you start investing. → Emergency Fund
ETF (Exchange Traded Fund) A fund that holds a collection of investments (stocks, bonds, or other assets) within a single structure, traded on a stock exchange like a regular stock. Most ETFs track an index and have low fees. → ETFs Explained
Expense Ratio / TER (Total Expense Ratio) The annual fee charged by a fund, expressed as a percentage of your invested amount. A 0.20% TER means you pay ฿200 per year for every ฿100,000 invested. Lower is generally better for long-term investors. → Investment Fees Explained
Index Fund A fund designed to track the performance of a specific market index (such as the S&P 500 or SET50). Index funds offer broad diversification at low cost. → Index Funds vs ETFs
Inflation The gradual increase in prices over time, which reduces the purchasing power of money. If inflation is 3% per year, ฿100 today buys only ฿74 worth of goods in 10 years. This is why investing matters — savings alone lose value to inflation.
Leverage Using borrowed money to invest or buy assets. Leverage amplifies both gains and losses. Common in property purchases (mortgages) and margin trading. Not suitable for beginners. → Real Estate Investing Basics
Mutual Fund A professionally managed investment fund that pools money from many investors. Unlike ETFs, mutual funds are priced once per day and often have higher fees. → Mutual Funds Explained
Portfolio Your total collection of investments — all your stocks, bonds, ETFs, funds, and other assets combined. A well-built portfolio is diversified across different asset types.
REIT (Real Estate Investment Trust) A company that owns and operates income-generating real estate (offices, shopping centres, apartments). Listed on stock exchanges — provides real estate exposure without buying property directly. → Real Estate Investing Basics
Risk vs Return The fundamental trade-off in investing: higher potential returns generally come with higher risk of loss. Understanding your personal risk tolerance is essential before choosing investments. → Risk vs Return
SEC (Securities and Exchange Commission) The regulatory authority overseeing the securities and investment industry in Thailand. Only invest through SEC-licensed providers. Verify any provider at sec.or.th. → Why Regulation Matters
SET (Stock Exchange of Thailand) The main stock exchange in Thailand, where Thai-listed stocks, ETFs, and REITs are traded. Capital gains on SET-listed stocks are currently tax-exempt for individual investors. → Thailand Stock Exchange (SET) Explained
SIPF (Securities Investor Protection Fund) Protects investors up to ฿1,000,000 per broker if a SIPF-member broker becomes insolvent. Does not protect against market losses — only against broker failure. Automatic and free for customers of SIPF-member brokers. → Why Regulation Matters · Broker Comparison
Volatility How much an investment’s price moves up and down over time. High volatility means larger price swings. Stocks and crypto are more volatile than bonds or savings accounts. Volatility is not the same as risk — but it requires the ability to stay invested through downturns.