VAYU1 (SET)
SET:VAYU1 – The Government’s “No-Money-In” Stock Market Booster Fund
If you ever thought the Thai government didn’t know how to play the market, think again. SET:VAYU1 (กองทุนวายุภักษ์) was one of the most ingenious, zero-cost financial engineering plays in Thailand’s stock market history. It was a fund designed to pump the SET Index, make it look like the Thai economy was booming, without the government having to spend a single baht.
How It Worked: Selling What the Government Already Owned
The concept behind SET:VAYU1 was simple:
- The government took shares from its existing holdings—primarily large, partially privatized former state enterprises like PTT, AOT, SCB, etc.
- These shares were transferred into a new mutual fund called SET:VAYU1, giving the fund credibility and a built-in revenue stream (because these companies were already profitable).
- The fund was then sold to the public—meaning the government effectively got people to pay them for assets they already owned.
- The cash raised from public investment was then used to buy even more Thai stocks, which artificially boosted the SET Index.
- The fund guaranteed a return—not because the government put in any money, but because the dividends from the transferred shares could be used to cover any shortfall.
- If the market went up, everybody won. If the market went down, the government just used dividends that would have been theirs anyway to keep the fund afloat.
In short, they took public assets, put them in a fund, sold shares of that fund to the public, and used that money to buy more stocks, creating a market pump that looked like real economic growth.
Why It Was Brilliant (And Slightly Sketchy)
- No government money was spent. Unlike a traditional stimulus, where the state injects cash, SET:VAYU1 just rearranged assets and got the public to fund it.
- It artificially boosted the Thai stock market. Since part of the money raised went back into buying stocks, it created demand and lifted prices.
- It looked good on paper. The government could claim they helped grow the market and made investment “accessible” to the public, while actually just selling them shares of what they already owned.
This was, essentially, a state-sponsored pump-and-dump—except the dump never happened.
What Happened?
- The fund made money, and investors actually saw returns.
- The government eventually bought back the shares, closing the fund down.
- Now, talks of doing it again are happening—because if it worked once, why not run it back?
So What’s the Takeaway?
SET:VAYU1 wasn’t a scam—it was just clever financial engineering. Instead of using taxpayer money, the government sold the illusion of an opportunity, used market mechanics to pump the index, and kept public confidence high.
It was a win-win, but also a reminder that markets are not always organic. Sometimes, they are carefully orchestrated shows—and if you’re smart, you can ride the wave instead of being caught under it.
