Investment performance is high but still not paid attention to
Statistics show that among the current 8 million securities accounts , there are only about 268,000 fund accounts. Meanwhile, fund certificates are a channel that shows superior performance compared to the general market index. Some open-ended funds investing in stocks have performance 3 times higher than the VN-Index.
Or for the whole year 2023, Mr. Nguyen Minh Tuan - CEO of AFA Capital - pointed out that having fund certificates brings investment efficiency of more than 31%, this number is quite impressive when compared to self-investment.
He said: "If there is no confidence, open fund certificates will be a tool to access the stock market. In the long term, in the past 5-10 years, open fund certificates have had good performance. investment "beats" VN-Index".
Looking at the general picture, the structure and limited number of accounts of institutional investors are Vietnam's weak points. Like developed markets, the proportion of institutional investors usually accounts for 50-60% waiting for comprehensive financial universalization, contributing to helping the market develop more sustainably. The proportion of individual investors currently accounts for more than 90%, leading to market volatility because they mostly buy and sell short-term instead of having a long-term investment mindset like funds.
Deputy Minister of Finance Nguyen Duc Chi said: "Everyone likes to open their own accounts and invest in stocks, and as a result, because of low capacity and awareness, they are easily manipulated by crowd psychology. Not necessarily. It is necessary to have 8 million accounts like today but only need 5-6 million, but half of them are accounts of institutional investors."
Note when investing in fund certificates
There is a popular saying "choose where to deposit your gold", similarly in investing you should also clearly understand where your money and assets will be managed. Le Thi Minh Hue - personal financial planning expert at FIDT Joint Stock Company - pointed out 3 aspects that each person needs to learn when choosing to buy fund certificates: the fund management company, the investment team, and the distribution channel.
Accordingly, investors can start with fund management companies that have a long history of operation, manage a large total asset value, and have many customers who are financial or non-financial institutions. The company's website publishes complete and transparent information.
"For fund management companies, the investment team is always considered the core. The more experience the investment team has, the more valuable their decisions are in the face of market fluctuations, especially are sudden fluctuations that have a big impact on your investment portfolio. If you have the opportunity, you can participate in workshops or livestreams of the fund management company to get more intuitive assessment for yourself.
If you invest in fund certificates through distribution channels, make sure the distribution channel is licensed as an open fund distribution agent or licensed to operate according to the regulations of the State Securities Commission to ensure your rights. legal when investing" - Ms. Hue shared.
It is also important to note that investing in open-ended funds is an indirect way of investing in the stock market, so stock funds will fluctuate quite frequently. Investors need to determine how much risk they can accept, how long the investment cash flow will be and what the investment purpose is to determine the appropriate type of fund. Besides, buyers should invest long-term to minimize market fluctuations.
