The need of generating a profit from saving money is always on demand. Therefore, in addition to traditional investment options such as real estate, gold trading, foreign currency, investing in an open-end fund is also favored by many potential and existing investors. In the list of all available solutions in an open-end fund as well as fund management companies, VinaWealth Enhanced Fixed Income Fund (VFF) managed by VinaCapital is one of the most outstanding investment solutions chosen by a large number of investors.
So why should you invest in VFF and how to invest with VFF in the Timo app? Find out the answers in the article below.
What is VinaWealth Enhanced Fixed Income Fund (VFF)?
First of all, an open-end fund is the type of fund where several investors with the same goal contribute to. It does not have a definite term and investors may join or leave the fund any time. As this is an indirect investment solution, you will receive fund certificates instead of stocks. The fund would be managed by a professional fund management company and used to invest in either stocks or bonds.
Bonds are a popular type of securities in both Vietnam and international markets. Investing in bonds mean the investors are lending money to either the government or a business. Stability and safety are the main benefits of bonds compared to other types of investments.
VFF is a bond open-ended fund with the objective of generating stable, low risk returns in the medium term (1-3 years). Per regulations, VFF must invest at least 80% of the fund’s assets into fixed-income instruments, including government bonds, government-guaranteed bonds, municipal bonds, corporate bonds, valuable papers, and bank deposits. The fund may invest up to 15% of assets into listed equity. VFF’s performance benchmark is the average 3-month deposit rate of Vietnam’s 4 state-owned banks (Vietcombank, Vietinbank, BIDV, Agribank).
Regarding operational objectives, VFF aims to maximize investment returns, including interest and growth of the investment. Through dynamic management, VFF will create an investment portfolio with low risks and ensure bonds with good prices are purchased and sold at a suitable period of time.
Find out more VFF here.
Why should you invest in VFF?
VFF is an appropriate investment solution for young investors who are planning to generate profit for themselves or their families. It is also a suitable investment solution for middle-aged investors who are looking for a stable and safe source of income for their retirement plans. In addition, VFF is also suitable for the purpose of diversifying investment risks.
Since its establishment in April 2013, VFF has achieved an average growth rate of 8.97%/year compared to the average interest rate of 12-month term deposit’s interest rate in the same period of time being 6.5%/year.
How to invest in VFF in the Timo app?
Every Timo account holder can open an investment account with VFF in the Timo app with only 2.000.000 VND. You can invest and settle your account via an online account management system (MIO) anytime, anywhere. The last trading day (T) for the investment to be transferred into the VinaCapital account is every Tuesday. 10:30 am on T-1 day (T minus 1) is the closing time of the trading session. The amount of money invested on T day will be updated in your account on T+2 day (T plus 2 working days).
To open an investment account with VFF in the Timo app, follow the below 3 steps:
- Under the Wealth Tab, Select “Investments”
- Choose VFF and select Open Account & Invest.
- VinaCapital will send you an email confirming your account setup and investment amount
- You can contribute more money from your Timo account to your VinaCapital investment account
Hopefully the above article will help you to find a suitable investment channel to effectively generate income from your savings. If you are not confident with starting an investment yet, you can always start with opening a term deposit to increase your savings. You can also find out more about Timo’s Term Deposit and its attractive interest rates here.