Compare open-end funds in Vietnam Best to reduce investment risk

Investing in open-ended funds in Vietnam is always the optimal choice for those who want safety, convenience and flexibility. Because, the fund will have experienced experts to advise and decide on all important strategies on your behalf.

So, today's article nganhangnongthon will compare open-end funds in Vietnam Best to reduce investment risk. Knowing this information will help you understand which funds are dominant in the market and which funds are the best fit for you. Follow along!

What is an open-end fund?

First, to know What is the best open-ended fund? Everyone needs to understand the concept and characteristics of this type of fund. The following website will distinguish between open-ended and closed-end funds through a comparison table to make it easier for people to visualize.

Distinguish between open-ended and closed-end funds

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Open FundClosed Funds
Fund size

  • Unlimited.

  • Will depend on the purchase and sale of investors.

  • Limited.

  • Will raise capital only once from the contribution of investors (Note: capital can be increased during the operation period according to the fund's charter).

Operating timeUnlimited.Limited.
Fund's liquidityThe liquidity of the open-ended fund is high thanks to the right to buy and sell fund certificates directly with the fund management company.Liquidity of closed-end fund is lower because it is not allowed to sell fund certificates to fund management company. Instead, it is possible to trade on the stock market.
Price volatilityPrice volatility is lower compared to NAV.Price volatility is higher than NAV.

Thus, people can see that open-ended funds have more attractive features because of their high liquidity, and investors can easily convert to cash when needed. This is the advantage of an open-ended fund, helping customers to actively stop participating in an open-ended fund in case the fund is inefficient in order to limit risks.

Compare open-end funds in Vietnam

In Vietnam today, there are many open-ended funds that operate effectively and are trusted by investors. Let's compare the top units in Vietnam to get more detailed information about open fund price listas well as the expected return.

Fund nameExpected profitNAV (billion VND)Minimum investment amountTransaction information
TCBF . Bond Investment Fund8 years

(Actual average for 3 years: 8.46%/year)

19,04210,000 VND

  • Issue fee: free.

  • Trading time: daily.

  • Redemption fee: 0% when investors hold > 12 months.

MBBond . Bond Investment Fund8 years

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(Actually in 2021: 7.4%/year)

54.12,000,000 VND

  • Issue fee: free.

  • Trading time: Monday - Friday every week.

  • Redemption fee: 0% when holding > 12 months.

VCBF . Bond Investment Fund>8%/year

(Actually in 2021: 5.22%/year)

70.51,000,000 VND

  • Issuance fee based on trading volume.

+ Under 11 billion VND: 0.3%

+ Over 11 billion VND: 0%

  • Trading time: Every Wednesday.

  • Redemption fee: 0% when holding >12 months.

SSI . Bond Investment FundExpectation 9% – 10%

(Actually in 2021: 2.13%/year)

187.91,000,000 VND

  • Issue fee: free.

  • Trading time: Monday - Friday every week.

  • Redemption fee: 0% when holding > 24 months.

Bao Thinh VinaWealth bond investment fundExpected 8% - 9%/year.

(Actually in 2021: 5.82%/year).

5162,000,000 VND

  • Issue fee: free.

  • Trading time: The 6th of every week.

  • Redemption fee: 0% when holding > 24 months.

Baoviet bond investment fundExpectation: 10% - 15%/year

(Actually in 2021: 6.56%/year).

162.21,000,000 VND

  • Issuance fee based on trading volume: from 0.3% (under 2 billion VND) to 0.15% (from 20 billion VND or more).

  • Trading time: Every Wednesday.

  • Redemption fee: 0% when holding for more than 6 months.

Vietnam Bond Investment FundExpectation: 9% - 10%/year

(Actually in 2021: 7.4%/year).

750.31,000,000 VND

  • Issue fee: free.

  • Trading time: Every Tuesday.

  • Redemption fee: 0% when holding > 12 months.

DCASH FUND . Bond Investment FundExpectations: 5.5% - 6%/year.

(Actually in 2021: 6.11%/year).

68.61,000,000 VND

  • Issue fee: free.

  • Transaction time; Monday - Friday every week.

  • Redemption fee: 0.5% when holding > 24 months.

Vietnam Bank for Industry and Trade Bond Investment FundExpectations: 9% - 12%/year.

(Actually in 2021: 2.88%/year).

10.23,000,000 VND

  • Issue fee: free.

  • Trading time: Every Wednesday.

  • Redemption fee: 0% when holding > 6 months.

Through the above comparison table, surely everyone has grasped the basic characteristics of Vietnam's best open-ended funds. Please consider and choose for yourself one/many funds to invest in looking for long-term profits in the future.

Pros and cons of investing in open-ended funds

For open-ended funds, everyone needs to know the pros and cons so that they can be weighed before making an investment decision.

Advantages of open-ended funds

Diversify your investment portfolio

With an open-ended fund, people only need a small amount of capital to invest in stocks, bonds, and derivative securities. In particular, the investment portfolio of open-ended funds is always diversified, ensuring profit maximization and minimizing risks for investors.

Low minimum capital contribution

Because it is a public fund, most open-ended funds in Vietnam stipulate a low minimum capital contribution to attract investors. Currently, fund certificates when issued will usually have a par value from 1,000,000 VND to 3,000,000 VND. TCBF only requires a minimum capital of 10,000 VND. Therefore, anyone can participate in the open-ended fund easily.

High liquidity

When participating in an open-ended fund, investors can freely buy/resell fund certificates at the trading time of each fund. Fund management companies always have a certain amount of cash monitored by the bank to ensure payment for orders to sell fund certificates.

Public and transparent fund information

The fund's revenue and expenditure activities are supervised by the State Securities Commission, the Supervisory Bank, the Auditing Company and the Fund's Representative Board.

In addition, investment information, asset value will also be updated regularly on the website/newsletter of the fund management company for everyone to actively grasp.

Very professional investment management

To limit open-fund investment risks, each fund will have seasoned experts with in-depth knowledge in the financial market. They have the ability to analyze and predict the market situation in advance to make accurate investment decisions. This will help people save a lot of costs compared to the form of small, unorganized investment.

Open-end fund disadvantages

As with any form of investment, everyone needs to accept one thing, which is risk. Investing in open-end funds will also have some limitations, such as:

  • Investors are not entitled to make detailed decisions about investment activities.

  • Market risk is relatively large.

  • The risk comes from the company (open-end fund goes bankrupt / stops working).

  • Some funds have a low return on investment.

Experience in choosing open-ended funds for effective investment

If you want to get the best investment results, people need to understand the criteria for choosing a reputable and safe open-ended fund.

The first: The fund has good business results, has been operating for a long time in the market, and the profit level is higher than other funds.

Second: Having a team of experts with extensive experience, knowledge and skills to make key decisions in the investment process.

Tuesday: The Fund regularly discloses information to investors for peace of mind and confidence.

Wednesday: The fund has a diversified investment portfolio with many potential stocks and bonds of different businesses/industries.

Thursday: The website and documents provided by the foundation must be full of information.

What investment channels are there currently?

Investment in the financial market will be divided into traditional channels and modern channels, specifically:

Traditional investment channelModern investment channel (new)
Bank savings.

Buy gold.

Buy real estate.

Buy stocks/bonds.

Buy open-end fund certificates.

Other investment products.

Whether it is a traditional or modern investment channel, there will be advantages and disadvantages, different levels of risk and expected return. For those who want safety and well-kept capital, they can choose the traditional channel, and those who want to take risks and expect high returns can choose the modern channel for investment.

Here is the information compare open-end funds in Vietnam Best to reduce investment risk. Hopefully, this article has provided an overview for everyone when choosing this form of investment in an open-ended fund with many prospects. If you still have any questions, please leave them in the comments below, the website will receive and respond promptly. Good luck!

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