Open Ended Fund 10.02.2022
What is an Open - Ended Fund and why should investors invest in an Open - Ended Fund?
CONTENTS
Why should invest in Open- ended fund
Advantages of Open- ended fund
- Opportunities to increase long-term profits
Open-ended funds can bring in higher returns because investing in stocks as a conventional long-term investment asset can yield higher returns, even after inflation is offset, as history has demonstrated in many countries.
- Professional management
Managed by professional analysts, Investors are free from a huge workload instead of directly analyzing and seeking investment opportunities in the increasingly complex stock market and need regular monitoring.
- Appropriate affordability
From one million VND, it is possible to invest in Fund Certificates.
- Diversification
With a small amount (1 million VND), investors can still diversify assets into many fixed-income assets and many stocks.
- Liquidity
Investors can withdraw capital from the fund at any time, and convert it into cash quickly and easily because AMC is the unit that directly acquires the fund certificates.
- Flexible
In an emergency, you need to use money, withdrawing part or all of the invested money is easy and fast.
The Open-ended Fund operates transparently and strictly complies with the regulations of the Securities Commission and the laws of Vietnam
In long term, open fund brings you a high return with low risk
- The Fund Management Company's strategy is to choose to invest in stocks that are reasonably priced and/or have good growth potential in the long term, leading companies, that have a large market share to invest in.
- Fund portfolio includes many stock codes in different industries, to avoid the effects of the risks of increase or decrease of some stocks.
When the value of the fund's assets increases, the value of the fund certificates increases and profitable investors.
Mode of investment
Flexible investment program
Each Open-ended fund will have a different trading day and trading rules and fees (Details in the product section)
Systematic investment plan (SIP):
Definition: A savings-investment program that allows investors to invest a certain amount of money to buy fund certificates on a regular basis over a specified period of time.
Advantages:
- Easy cash flow management helps investors identify financial goals with small fixed monthly investments.
- Easy to plan investment: most of us calculate the cost of spending by the month so invest monthly savings favorable investment plan calculation.
- Combining investment and savings: periodic investment is an investment program that has both investment and savings. Therefore, this is a program that brings both advantages for investors.
Benefits for investors:
- Compounding: The longer the investment period, the investor will accumulate more money due to interest
- Average investment costs: Calculated per Fund Unit of Investor usually lower than the average fund certificate price, regardless of how the fund certificate fluctuates => Investors will benefit without having to monitor the fund certificate price (NAV /share) daily.