Open-end fund is currently the type of investment that draws interest and attention from a lot of investors in Vietnam. It is also known to be a well-known trend in both domestic and foreign markets.
1/ What is an open-end fund?
An open-end fund is a type of mutual fund that is contributed by many investors with the same goal and does not have restrictions on the amount of shares the fund can issue. The concept of “open-end” relates to the amount of time and the number of investors participating in the investment. The fund is normally managed by a professional fund management company and it is usually used to invest in stocks and/or bonds.
An Open-end fund is a type of indirect investment. While investing in companies generates stock, investing in open-end funds generates fund certificates to investors. This type of investment is suitable for a large number of investors who do not have a lot of prior knowledge or expertise in this field. Also, open-end funds can help investors achieve their long-term investment goals through the experience and expertise of investment experts.
Stocks selected by investment experts are usually lower than their real value, however, they would have a potential growth in the long run. The higher the value of fund assets, the higher the value of fund certificates. This is how investors would earn profit from their open-end funds.
2/ Trustworthy open-end funds in Vietnam
The first open-end fund in Vietnam was created in 2013. However, it only came to be known as a strong type of investment since 2016 where it exceeded the average investment efficiency compared to the general market..
In Vietnam, there are currently two types of open-end funds, including equity funds and bond funds. These types of open-end funds are chosen and preferred by many investors because they are easy to invest in and provide high returns.
Trustworthy open-end funds in Vietnam, at the moment, include: Equity Opportunity Fund (VEOF), Enhanced Fixed Income Fund (VFF) and Vietnam Equity Special Access Fund (VESAF). VinaCapital is the investment management company that offers all these three products.
With more than 15 experience of investment experience in Vietnam, VinaCapital is highly appraised and has became the leading choice for many investors. The aim of VinaCapital is to bring high profitability to non-professional investors through their prestige and professionalism. This is also a good opportunity for investors to earn profit as well as gain experience and build relationships at the same time.
3/ Benefits of investing in the open-end fund managed by VinaCapital
High long-term returns: By investing in stocks and bonds with long-term growth potential, short-term stock market risks will be limited.
Safe investment managed by professionals: As a leading expert in the field and with more than 15 years of experience in fund management, investors can be assured of their investment with Vincapital.
Flexible liquidity: In case investors need to use partially or all of their investment, this can be done easily.
Risk reduction through diversification: Open-end funds invest in a large amount of companies in different fields and industries. Hence, the risk level of this investment type is low.
Timo cardholders can open an investment account with VinaCapital right in the Timo app. All you need to do is sign in to the Timo app, select Investment under the Wealth tab. There are two investment options for you to choose from depending on your needs and requirements, including: Equity Opportunity Fund (VEOF) and Enhanced Fixed Income Fund (VFF). Find out more here.