How do rich people manage their fortune?

From asset accumulation to asset management

For more than a decade, Vietnam has emerged as one of the fastest growing asset management markets in the world.

According to McKinsey, with an average growth rate of about 11%/year in the last 5 years, the total financial assets of Vietnamese people are forecast to reach about 600 billion USD by 2027. In the highest segment, according to Knight Frank, Vietnam belongs to the group of leading countries in the world in terms of the growth rate of the number of super-rich people, with an increase of nearly 60% in the past 5 years. Behind those figures is a generation of successful entrepreneurs, real estate investors, senior experts and the young generation of successors (Next-Gen) are gradually forming a new class of assets.

However, assets are growing faster than the change in asset management habits towards professionalism. Many Vietnamese people still spend most of their time monitoring the market, making investment decisions themselves and directly shouldering the responsibility of managing their assets. Meanwhile, in many developed markets, accompanying professional asset managers has long become an important part of the journey to preserve and increase assets through many generations.

Investment entrustment - Asset management solution according to professional standards

In fact, the investment entrustment model is not unfamiliar to large financial institutions. According to data from the State Securities Commission, total assets managed by fund management companies have now reached over 800,000 billion VND, of which nearly 90% are entrusted portfolios. Notably, more than 80% of this value comes from insurance companies, which are a group of investors famous for their long-term philosophy, discipline and prudence.

Perhaps that is not a random choice. Because for organizations that own large capital sources and put safety first, what they seek is not only profit, but also a transparent governance mechanism, a professional investment process and the companionship of experts with clear responsibilities.

In essence, investment entrustment is the form of customers assigning asset management to investment experts based on previously agreed strategies and goals. Accordingly, the role of portfolio management, transaction implementation and asset storage is specialized and separated between independent organizations to create a control mechanism to ensure that customers' assets are always managed transparently, separately and operated in accordance with the agreed strategy. Thanks to that, customers can spend more time on business, family and long-term goals, while the portfolio is operated by a team of experts according to a disciplined and consistent investment process.

BIDV Smart Investment - A reliable friend on the journey of asset management

In the context of increasingly clear needs for asset management but the entrustment habit is still quite new, the role of reputable financial institutions in connecting customers with leading market experts becomes more important than ever. That is the goal that BIDV aims for through the Smart Investment solution specifically for individual customers with large assets.

Smart Investment will bring an ecosystem of investment strategies designed to suit the financial goals and risk appetite of each customer. The portfolios are managed by leading fund management companies in the Vietnamese market such as Dragon Capital, Vina Capital and SSIAM, with many investment philosophies suitable to diverse customer profiles, from long-term growth prospects, sustainable investment according to ESG criteria to prioritizing capital preservation and creating stable cash flow.

Not only stopping at financial solutions, customers when participating in Smart Investment also enjoy the exclusive ecosystem of BIDV Private Banking, participate in events gathering business executives, investment experts at home and abroad, the Private Club community with topics on art, culture and lifestyle, along with many incentives designed specifically for high-end customers. Accordingly, the value that customers receive is not only in the ability to increase assets, but also in accessing a community of knowledge, quality relationships and a lifestyle commensurate with the position they have built.

In a dynamicly growing economy, as more and more Vietnamese people accumulate significant assets, the need for asset management in a methodical and professional manner is also gradually becoming clearer. In that journey, BIDV Smart Investment will be a reliable companion for customers.