Besides the stock market, real estate, foreign currency, the investment fund is an extremely attractive investment channel. So what is an Investment Fund? What is the information about open-ended investment funds in Vietnam? Let’s find out the content in the following article.
What is an investment fund?
According to the Wikipedia page, an Investment Fund is a way of investing money together with other investors to benefit from the advantages that come with working as part of a team.
These advantages include the ability to:
- Hire professional investment managers, capable of delivering better returns and managing risks more fully;
- Benefit from economies of scale, which means lower transaction costs;
- Increase asset diversification to reduce unsystematic risks.
Quỹ đầu tư là quỹ huy động vốn từ các nhà đầu tư để đầu tư vào các loại tài sản tuân thủ theo mục tiêu được xác định như cổ phiếu, chứng khoán, bất động sản, tiền tệ, trái phiếu. Quỹ được quản lý bởi đội ngũ chuyên gia giàu kinh nghiệm và được ngân hàng giám sát cùng các cơ quan thẩm quyền nhằm đảm bảo đầy đủ quyền lợi cho các nhà đầu tư.
Classification of investment funds
There are 06 criteria to classify investment funds.
Based on capital mobilization structure
Closed-end fund: Through the process of raising capital, the fund only issues one time only and does not repurchase shares/fund certificates when investors need to resell. This form helps to raise capital and fund certificates will be listed on the stock market, creating stability and high liquidity.
Open-ended funds: Unlike closed-end funds, open-ended funds have no limit on the number of participants as well as investment time. Depending on demand, investors can work directly with the Fund Management company or at designated agents to resell fund certificates based on the net asset value at the time of transaction.
Based on mobilized capital
Member Fund (Individual Investment Fund): Fund is raised by private placement for a group of investors such as individuals, businesses, organizations, large economic groups, etc. preselect. Therefore, the liquidity of this fund will be lower, the amount of capital is larger than that of the public fund. However, investors can participate in controlling the investment of the fund.
Public Fund (Collective Investment Fund): To raise capital for this fund, investors need to issue it widely to the public. Collective investment funds provide small investors with investment vehicles that ensure portfolio diversification, limit risks with low investment costs but high efficiency.
Based on the organizational structure and operation of the fund
Corporate Investment Fund: This fund is essentially a company formed under the provisions of the laws of each specific country. The Fund is managed by the Board of Directors – the highest-level executive body elected by the shareholders (investors) unanimously. The fund’s main tasks are to control all operations, manage investment activities and perform other business administration tasks.
Contract Investment Fund: This model is not a company. The management company will open the fund, call for capital mobilization from investors and conduct investment based on the objectives set out in the fund charter. Investors are those who contribute capital to the fund and entrust the investment to the fund management company to ensure the highest profitability from their contributed capital.
The role of investment funds in the economic and financial market
An investment fund is not only a “tool” to help investors grow profits, but also an optimal solution to promote the development of the economic and financial market.
Roles with investors:
- A financial investment fund is the optimal solution for investors who do not have time to learn the market, have low independent analysis ability, and are not sensitive but still want to invest to make passive money from products. Products: Stocks, bonds…
- The fund is managed by a team of experienced professionals in effective cash flow management, choosing the right investment channel to bring maximum profit.
- Investing in the fund will help diversify assets: stocks, gold, foreign currencies, real estate, etc., helping to reduce financial risks and enhance long-term revenue.
The role of the financial and economic market:
- The Fund is mobilized from many sources of capital to invest in the stock market, gold, real estate… bringing flexibility, good liquidity, creating a driving force to promote market development.
- The fund has a good history of operation and has high success projects that will create confidence and attract domestic and foreign investors to participate. This contributes to increasing foreign exchange capital, helping the financial and economic market become more vibrant than ever.
Learn about open-ended investment funds in Vietnam
On the Vietnamese market today, there are many open-ended investment funds that meet all the criteria of a reputable fund management company that you can choose the number and par value of fund certificates according to your needs.
You can refer to the following selection of reputable open-ended funds published on the Portal – State Securities Commission below:
- Vietnam Equitization Concentration Member Fund
- Viet Capital Health Membership Fund
- Dynamic securities investment fund DC
- MB Capital Vietnam Bond Securities Investment Fund
- Vietnamese Balanced Investment Fund
- Strategically Balanced Investment Fund – VCBF
- Top Equity Fund VCBF
- Hung Thinh VinaWealth Stock Investment Fund
- Manulife Stock Investment Fund
- Baoviet Dynamic Stock Investment Fund
See more Open Investment Funds here.
With the information Skylink Partners shared about Investment Funds and open investment funds in Vietnam, you must have had an overview of the current investment fund market. In order to be able to choose the right fund and investment channel, you should actively update relevant knowledge, research the market to make the right choice, and maximize investment profits.
Start-up investment fund Skylink Partners is a member of Skylink Group operating under the venture builder model. Owning a team of experienced core experts in the fields of finance, IT, sales & marketing, Skylink Partners is committed to bringing diverse investment products in the fields of technology, social media, and retail with high quality. , has long-term profitability potential. Therefore, if investors want to accompany or cooperate with us, please contact the hotline 028 6254 9999 or leave a message.