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August 13, 2023

Top Vietnam Investment Fund in 2023

The "Vietnam Investment Fund" refers to a financial entity focused on investing in various assets within the Vietnamese market. This fund pools money from individual and institutional investors to make investments in different types of assets, such as stocks, bonds, real estate, and other financial instruments, with the goal of generating returns for its investors.

The fund's portfolio is managed by professionals who aim to make strategic investment decisions to achieve growth and profitability based on the performance of the chosen assets. The Vietnam Investment Fund plays a significant role in channeling capital into the country's economy, contributing to economic development, and providing opportunities for investors to invest in Vietnam and participate in the growth of Vietnam's markets and industries.

Vietnam investment fund - Dragon Capital

Dragon Capital Vietnam Investment Fund Management Joint Stock Company (DCVFM) was founded through a collaboration between two prominent financial institutions in Vietnam, Dragon Capital and Vietnam Investment Fund Management Joint Stock Company. With a team comprising nearly 150 individuals from over 10 different nationalities, predominantly Vietnamese, Dragon Capital possesses numerous strengths in expertise, qualifications, local insights, and work standards. DCVFM boasts a diverse team with proficiency in various areas, including investment management, macroeconomic analysis, trading, legal affairs, and customer service. Their expertise spans across investment sectors such as public stocks, equities, bonds, real estate, and sustainable development.

DCVFM is a versatile fund management company that offers a range of products catering to diverse investment requirements and expectations, catering to both individual and corporate customers. VFM's investment offerings encompass stocks and bonds, all of which exhibit strong performance within the market, with particular prominence on DCVFM's exchange-traded funds (ETFs), the sole domestic ETF products in operation in Vietnam and indirectly listed on the stock exchanges of Korea and Thailand.

The cumulative scale of assets under the management of the Vietnam investment fund - Dragon Capital Group currently exceeds 77,000 billion VND (nearly 4 billion USD). The company offers an array of product and service options to cater to the needs of both institutional and individual investors, both domestically and internationally.

Vietnam investment fund - Vinacapital

Established in 2012 by Vinacapital Group's subsidiary, Vinacapital Fund Management Joint Stock Company, the Vinacapital Fund stands as an open investment fund. This Vietnam investment fund extends a range of financial services including fund management, investment consultancy, and the administration of varied investment portfolios. Beyond this, Vinacapital has also set up the VinaCapital Foundation, a charitable initiative aimed at serving the welfare of children and adolescents in Vietnam.

Founded in 2006, VinaCapital Foundation (VCF) emerges as one of Vietnam's pioneering large-scale foreign charitable organizations, demonstrating effective operations since its inception. The foundation's establishment aims to foster engagement from both corporate entities and individuals within the society to contribute to community initiatives and underscore the significance of philanthropic endeavors. VCF's primary focus lies in elevating the well-being of children in Vietnam. Presently, VCF directs its efforts towards enhancing the quality of life for children and mothers, thereby mitigating poverty and fostering the growth of the middle class.

With over two decades of experience and a seasoned team, the estimated total assets under VinaCapital Foundation's management are approximately 2 billion USD. This institution boasts a diverse portfolio of projects, cementing strong ties within the business community.

Popular products of Vietnam investment funds

Open-end fund

An open-end fund, also known as a mutual fund, is a type of Vietnam investment fund that is open to new investments from investors at any time. It continuously issues new shares to investors and buys back shares from them as well. This characteristic distinguishes open-end funds from closed-end funds, which have a fixed number of shares that are traded on secondary markets like stocks.

Key features of open-end funds include:

Liquidity: Investors can buy and sell shares of an open-end fund directly from the fund itself at its net asset value (NAV) per share, which is calculated daily. This provides liquidity, making it easier for investors to enter or exit their investments.

Professional Management: Open-end funds are managed by investment professionals who make decisions about which securities to buy, hold, or sell within the fund's portfolio. This allows investors to benefit from diversification and expertise even with a relatively small investment.

Diversification: Open-end funds pool money from multiple investors to invest in a diversified portfolio of securities, which could include stocks, bonds, or other assets. This diversification helps to spread risk and minimize the impact of poor performance in any one security.

Net Asset Value (NAV): The NAV of an open-end fund is the total value of its assets minus liabilities, divided by the number of outstanding shares. It's a reflection of the fund's overall value per share and is calculated at the end of each trading day.

Open-end funds are popular investment vehicles for individual investors due to their ease of entry, professional management, and diversification benefits. Investors can choose funds based on their investment goals, risk tolerance, and preferences, as there are open-end funds available in various asset classes and investment strategies.

Open-end fund of Vietnam investment fund - Dragon Capital

DC Dynamic Securities Investment Fund – Fund ticker: DCDS is Vietnam’s first public fund that has been in operation since April 2004. Boasting a 19-year history, DCDS stands as Vietnam's longest-running open-ended fund, consistently ranked among the top-performing equity funds in the market.

The DCDS Fund's investment goals are focused on maximizing long-term returns, achieved through capital growth and earnings derived from investments in growth stocks and other regulated financial assets. The fund's stock portfolio is well-diversified across various industries and market capitalizations. It selectively invests in companies exhibiting strong growth potential, solid asset quality, and appealing valuations.

The DCDS Fund employs an active investment strategy, focusing on stocks of companies listed on the Vietnam stock market and various other financial assets. These assets include, but are not limited to, Government bonds, Government-guaranteed bonds, local government bonds, bonds of issuers operating under Vietnamese law, valuable papers and money market instruments, derivative securities.

DCBC (old name VF4) – DC Blue-chips Fund is the 2nd public fund raised and managed by DCVFM with initial chartered capital of VND806.46 billion (USD48.9million) in January 2008. Having operated for five years, DCBC has transitioned into an open-ended fund in alignment with global investment trends, aiming to deliver optimal benefits to investors.

DCBC invests in blue-chips on the Vietnam stock market as well as leading government enterprises operating in all fundamental sectors of the Vietnam economy. Investment potential in such enterprises will emerge from the equitization of large state-owned enterprises over a period of three years, from 2007-2010. The industries include but not limited to: energy, mining, finance, banking, telecommunication, infrastructure, property, consumer products. Those companies are top 20 in the industries which they are operating and have minimum chartered capital of VND150 billion. Investors now have a golden opportunity to capitalize on the final equitization prospects. Moreover, the rapidly expanding private sector, coupled with an unprecedented economic boom, has further amplified the potential for blue-chip investments.

DCBF fund is open-ended fund mainly from investments in fixed-income securities, including but not limited to Vietnamese Government bonds, government-guaranteed bonds, municipal bonds, and valuable papers accounts for at least eighty percent (80%) of the Fund’s net asset value. DCBF will also have opportunity to invest in corporate bonds.

DCBF employs an active management strategy that relies on fundamental analysis of macroeconomic conditions, quantitative models, statistics, and corporate analysis to inform its decision-making process. The primary objective is to optimize profits for the portfolio. When it comes to corporate bonds, the analysis is based on at least one of the credit rating models developed by DCVFM and the fund's consultant, DCDM.

Open-end funds of Vietnam investment fund - Vinacapital

VINACAPITAL-VESAF is an open-ended equity fund professionally managed by VinaCapital. VINACAPITAL-VESAF invests in the stocks of companies with small and medium market caps and high growth potential, especially stocks that have attracted special attention from foreign investors with limited room for foreign investments.

VINACAPITAL -VFF is a Vietnam investment fund that is an open-ended bond fund expertly overseen by VinaCapital. VINACAPITAL-VFF invests into corporate bonds issued by highly credit-worthy institutions, with the main investment objective of generating higher return than 12-month deposit rate in medium-to-long term.

VINACAPITAL-VEOF is an open-ended equity fund professionally managed by VinaCapital. VINACAPITAL-VEOF invests in the stocks of companies with large market capitalizations and high growth potential.

ETF (Exchange Traded Fund)

An Exchange-Traded Fund (ETF) is an investment fund traded on stock exchanges, akin to individual stocks. Their purpose is to mirror the performance of a particular index, sector, commodity, or asset class. They offer investors an opportunity to gain exposure to a diversified portfolio of assets without having to buy each individual security separately.

Key features of ETFs include:

Market Trading: ETFs trade on stock exchanges throughout the trading day, just like stocks. Investors can buy and sell ETF shares at prevailing market prices. This provides real-time liquidity and flexibility compared to traditional mutual funds.

Diversification: ETFs typically represent a portfolio of underlying securities that match a specific index or investment theme. This diversification helps spread risk and reduces the impact of poor performance of any single security.

Passive Investment: Most ETFs follow a passive investment strategy by tracking a particular index's performance. This means that the ETF's goal is to replicate the index's returns, rather than actively selecting securities.

Low Expense Ratios: ETFs tend to have lower expense ratios compared to actively managed mutual funds. This is because passive management strategies involve less trading and research.

Intraday Pricing: Unlike traditional mutual funds that are priced once a day after the market closes, ETF prices fluctuate throughout the trading day. Investors have the ability to monitor the real-time value of their investments.

Overall, ETFs offer a convenient and cost-effective way for investors to diversify their portfolios, access specific market segments, and implement different investment strategies. They have become increasingly popular due to their transparency, flexibility, and potential for tax efficiency.

ETF (Exchange Traded Fund) of Vietnam investment fund - Dragon Capital

VFMVN30 ETF is the first ETF in Vietnam issued and managed by VFM company under the Certificate of Fund Establishment Registration No. 14/GCN-UBCK issued by the State Securities Commission on September 18, 2014 with the number Initial public offering is VND 202 billion. VFMVN30 ETF has been listed and officially traded at the Ho Chi Minh City Stock Exchange. Ho Chi Minh City from October 6, 2014. The transaction code is E1VFVN30.

The goal of the VFMVN30 ETF is to simulate as closely as possible the performance of the VN30 reference index after deducting the Fund's expenses. VN30 index is a price index developed and managed by the Ho Chi Minh City Stock Exchange, including 30 companies listed on the Ho Chi Minh City Stock Exchange. Ho Chi Minh City (HOSE), has the largest capitalization value and leading liquidity.

VFMVN30 ETF uses a passive investment strategy to realize predetermined investment goals. When the securities portfolio of the VN30 index changes, the VFMVN30 ETF will adjust the Fund's portfolio to match the VN30 index's portfolio in terms of asset structure and proportion. The fund will aim to have results similar to the reference index and do not implement defensive strategies when the market is falling or realize profits when the market is overvalued. Passive investing aims to reduce costs and simulate closer to the reference index by maintaining a lower return on investment than funds using an active investment strategy.