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The Bualuang RMF will invest in five main sectors: energy and utilities, property development, construction and materials, logistics and information technology, and telecommunications.

Having met with the finance minister five times in the past few months, Bualuang's managing director Voravan Tarapoom was now convinced that the direction the government is taking will boost domestic consumption.

"The economic fundamentals are there," said Voravan. "As the US economy slows down, it is inevitable that growth in Thailand must be propelled from within," she added.

For the past four years private investment had been falling as the average capacity utilisation steadily increased.

It was only in the middle of last year that private investment started to gradually rise, said Voravan.

According to the Bank of Thailand, the private investment index is now at 5 per cent. The enlarged budget deficit means there is a gap to be filled by the private sector.

The six sectors identified by Bualuang have seen their capacity exceed the average of the overall economy.

Voravan said the huge difference between investment money approved by the Board of Investment (BoI) and net foreign direct investment last year means the private sector is eager to invest.

In the first three months of this year, 273 projects out of 346 applications had been approved by the BoI to the tune of Bt44 billion.

At least 30-40 per cent of the RMF will be invested in the energy sector, according to its market capitalisation, the largest in the local bourse, said Voravan.

Sales growth for these sectors have been in the double digits too and the energy and utilities sector recorded revenues of Bt2.5 billion last year.

RMF's parentage can be traced to the Bualuang Infrastructure Fund launched in 1994.

It was Bualuang's first fund when it opened for business.

As of February, the fund has enjoyed a return of 46.36 per cent annually since it was started.

Subscription for the new fund begins today and ends on May 21.