What are mutual funds?​

A mutual fund certificate is proof of your investment in a fund. In other words, you hand over your money to financial experts,receive a mutual fund certificate in return, and they manage and invest your money.

These experts have knowledge and experience in selecting suitable investment assets such as stocks, bonds, precious metals, real estate, etc., in order to optimize returns.

You stand to gain from your invested capital if the fund’s investment process yields positive results.

For instance:

  • Suppose you have 120 million VND to invest. You buy 10,000 mutual fund units at 12,000 VND each. The financial experts then utilize your money for profit-making investments.
  • After a while, if the mutual fund unit price increases to 15,000 VND, your profit would be: (15,000 – 12,000) x 10,000 = 30 million VND (excluding fees).

The mutual fund’s fees can include an management fee, subscription fee, redemption fee (depending on the specific investment fund).

Do Mutual Funds yield high returns?

Mutual funds can generate higher returns than saving accounts, and entail less risk than direct stock investments. Specifically:

1. Higher returns than savings:

Bank savings accounts yield an annual profit of 5-8%. However, if you invest in mutual funds:

Rank Mutual Fund Name Issuer Average Annual Return (last 3 years) Last 6 months return


25.64 %



20.86 %
18.58 %

34.76 %

24.15 %

Bảng xếp hạng các chứng chỉ quỹ (dựa trên lợi nhuận hàng năm trong 3 năm gần nhất) – Số liệu được cập nhật đến ngày 17/05/2023 – Nguồn Fmarket.

2. Lower risk than investing on your own:

For individuals who are not investment experts, investing in stocks on your own can result in losses if you don’t understand the market well. But investing in a mutual fund can reduce risks, thanks to the fund managers’ expertise.

For instance: In 2022, the VN Index fell by about 32.8%. If you lacked knowledge but still decided to invest, you could have lost more.

But if you had invested in VinaCapital’s VEOF fund, the fund managers would have limited the decrease for you to only 21.2%.

3. Risk reduction through diversification:

Diversifying your investment portfolio means splitting your capital to invest in various asset types, rather than focusing on one or a few.

While an individual investor can only manage around 5-7 assets, a fund can manage over 20 different assets.


In 2020, the tourism industry was severely affected by COVID-19, causing a significant drop in many companies’ stock prices within the industry. If you had invested all your capital in the tourism sector at that time, you could have suffered heavy losses.

Meanwhile, the IT sector was promoting remote work, online learning, and shopping during this period → stocks of tech companies like Zoom and Amazon appreciated significantly.

If you diversified your investment portfolio by investing in both the tourism and IT sectors, you would not only have minimized damage from the tourism sector but also profited from the growth of the IT sector. This is the perfect example of portfolio diversification.

If you’re interested in mutual funds, you might want to check out the Top 5 funds with the highest average return over the last 3 years in Vietnam.

Among these five, VESAF and VEOF, managed by the VinaCapital fund management company, have yielded the highest returns. You can learn more about VinaCapital here: Understanding VinaCapital Investment Fund

Buy VinaCapital fund certificates right on Timo digital bank’s app. Invest anytime with just 100,000 VND.