Open-ended funds are ideal for investors who do not have knowledge or expertise in securities and can instead benefit from the experience and expertise of fund managers.VNS Photo
The open-ended mutual fund market has developed rapidly in recent years, with quarterly growth averaging 17.6 per cent since 2016, a workshop on investors and open-ended funds heard in HCM City on Wednesday.
Open-ended funds are ideal for investors who do not have knowledge or expertise in securities and can instead benefit from the experience and expertise of fund managers.
Bui Ngoc Luan of VinaCapital Fund Management JCS said globally open-ended funds account for more than 60 per cent of total securities trading.
Thai Thi Hong, a training expert at VCFM, said 26 such mutual funds have been issued in the country since 2013.
“In the last four years, the assets under management by open-ended mutual funds have grown by 70 per cent a year,” she added.
It is likely to grow even faster rate in the coming years, she said.
The overall market is currently worth VND17.5 trillion (US$754.2 million) while a single fund in the US and elsewhere could manage assets of billions of dollars.
Luan said: “An investor who invests in an open-ended mutual fund needs to understand their risk appetite and which kind of fund is suitable for their investment needs at each stage.”
Tran Tuan Anh, deputy head of the State Security Commission’s HCM City office, said the country has an adequate regulatory framework to manage open-ended funds.
Organised by VinaCapital Fund Management JSC, a member of the VinaCapital Group, and the State Securities Commission, the workshop was aimed at helping young people, new graduates, retail investors get a clearer perspective on personal financial planning, acquire basic investment skills and learn about a relatively low-risk asset class.
It was open to the public and attendees only had to register in advance.
Nguyen Thi Thai Thuan, general director of VinaCapital Fund Management, said: "The goal of VCFM is to create investment opportunities for all Vietnamese to increase their assets in a legitimate way and with the least risk.” — VNS