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"The oil price is now stable at about US$50 a barrel, so we think it's the right timing for the oil fund," chief marketing officer Srinet Rittirong said yesterday.

US equity and capital markets have also sent out encouraging signals, indicating that investors have more confidence in the government's economic stimulus measures, she said.

The International Energy Agency estimates that oil demand will rise significantly over the next five years, she said.

The PrimaVest Oil Fund is a feeder fund that will invest in the PowerShares DB Oil Fund, an exchange-traded fund listed on the New York Stock Exchange.

The PowerShares fund will invest in West Texas Intermediate oil, with returns similar to the Deutsche Bank Liquid Commodity Index Optimum Yield Crude Oil Excess Return benchmark.

DB Crude Oil's return last year plunged by 40.80 per cent, well below other oil indices.

As the commodity has low correlation with financial assets, an oil fund can help diversify investors' risk, she said.

The minimum purchase is Bt5,000.

The fund can be traded daily before 3.30pm, so it has no policy to hedge against foreign-exchange risk.

In March, both MFC Asset Management and Tisco Asset Management marketed oil funds investing in the PowerShares DB Oil Fund.

PrimaVest Asset Management next plans to roll out an equity fund linked with Hong Kong's Hang Seng Index.

"We want to launch products which are wellknown among investors and the Hang Seng Index is one of them," she said.

Due to the current market rally, the company would consider again if the Hang Seng is overpriced, she added.