Asset allocations in a Thai defined contribution fund: a behavioural experiment conditioned by financial expertise

Pornanong Budsaratragoon, David Hillier, Allan Hodgson, Suntharee Lhaopadchan

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This paper reports the results of a behavioural experiment on the ability of Thai individuals to make informed investment decisions under a defined contribution self-management option. Using an asset allocation dataset from members of the Thai Government Pension Fund (TGPF) and a control sample of financially knowledgeable individuals (MBA finance students), we report that TGPF members are relatively more risk averse, exhibit a greater home investment bias, and over-react to market price movements. Financially savvy MBA students hold more shares and international securities, and earn greater long-term returns. The fact that the emotional TGPF members’ allocations outperform the TGPF default plan, along with strong preferences for time liquidity diversification, provide challenges for TGPF managers to review their financial engineering and to lobby for a revision of the restrictive investment ceilings.
Original languageEnglish
Pages (from-to)319-339
Number of pages21
JournalInternational Journal of Economics and Management
Issue numberS2
Publication statusPublished - 30 Dec 2016


  • home pension
  • bias
  • pensions
  • financial literacy
  • emotional asset allocations
  • Thailand
  • investment decisions
  • self-management

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