Investors conduct transactions on a trading floor of a securities firm. — VNA/VNS Photo
Most open-end funds are currently surpassing the VN-Index in terms of performance in the first eight months of the year, according to a report from Fmarket, a platform concentrating on nearly 50 open funds managed by top fund management companies in Việt Nam.
Topping the charts is VinaCapital Modern Economy Equity Fund (VINACAPITAL-VMEEF), with an impressive profit margin of 32.84 per cent, far exceeding the market benchmark VN-Index's modest 13 per cent increase.
Despite only being established in May 2023, VMEEF has already achieved remarkable profits, leading the market in equity fund performance.
The fund focuses on stocks poised for long-term revenue and profit growth, aligning with Việt Nam’s economic development drivers like urbanisation, the rising middle class and digitalisation.
By the end of July, the fund’s significant investments include industry leaders such as FPT Telecom Joint Stock Company (FOX) of information services, Vietcombank (VCB), Asia Commercial Joint Stock Bank (ACB), Vietinbank (CTG) and MBBank (MBB) from the banking sector, Bảo Việt Holding (BVH) of the insurance industry, IDICO Corporation (IDC) and REE Corporation (REE) from industrial and Imexpharm Corporation (IMP) of the healthcare sector.
Following VMEEF are SSI Asset Management Company's (SSIAM) SSISCA and VLGF funds, ranking second and third with attractive profit margins of 29.68 per cent and 27.74 per cent, respectively.
Other open-end funds, like Bảo Việt Prospect Equity Open-ended Fund (BVPF), VCBF Blue Chip Fund (VCBF-BCF), Mirae Asset Vietnam Growth Equity Fund (MAGEF), DC Dynamic Securities Fund (DCDS), Vinacapital Equity Opportunity Fund (VEOF), Vinacapital-VESAF and Manulife Stock Investment Fund (MAFEQI), also boast profits exceeding 20 per cent, outperforming the VN-Index's 13.63 per cent growth rate.
Fmarket highlights that while Việt Nam’s economy is still in a gradual recovery phase, open-end funds continue to deliver noteworthy profits.
This underscores the effective investment strategies of fund management firms, adeptly seizing market opportunities to optimise investor returns and enhance the efficiency of open funds, particularly those focused on equities.
Despite recent global financial market volatility, the domestic economy continues to experience strong recovery, with sustained growth in manufacturing and services driving open fund profits upwards.
Fmarket advises investors to focus on long-term strategies, regular investments and portfolio restructuring for sustainable wealth accumulation.
The economy has shown positive signs in the first eight months of the year, with experts predicting GDP growth to rise from 5.1 per cent in 2023 to 6.5 per cent this year.
Low interest rates further support businesses' access to capital for production cycles and recovery.
Market sentiment remains influenced by global fluctuations in the short term, but analysts remain optimistic about Việt Nam’s long-term stock market growth potential, citing upcoming regulatory changes and market upgrades, as positive catalysts. — VNS