Currently, in Vietnam, the forms of investment funds are increasingly developing and providing a variety of investment options for customers. Below, we will share about the concept as well as a list of reputable investment funds in Vietnam for you to consider in making suitable investment choices for yourself.
What is an Investment Fund?
An investment fund is an intermediary financial unit or institution capable of mobilizing capital from various sources. The mobilized capital will be allocated to invest in categories such as stocks, bonds, currencies, and other types permitted by the State, depending on the investment appetite of each fund. The investment fund operates transparently, disclosing its investment appetite to investors so they can choose an investment style that suits them.
Investment funds gather professional personnel with specialized knowledge and skills in the market to advise and support investors in selecting suitable investment projects.
Classification of Investment Funds in Vietnam
Based on the capital movement structure:
Closed-end fund: The issuing unit will not repurchase the fund certificates sold after the fundraising period but will list all of them on the stock exchange.
Open-end fund: Managed by a specific organization to mobilize capital from the public. The raised funds will be invested in securities, and profits will be redistributed to investors. Fund certificates will be purchased by the fund at any time.
Based on the source of mobilized capital:
Collective investment fund: A form of publicly raising capital to small investors to reduce risk, diversify portfolios, and maintain low costs. This type of fund is usually for individual investors or legal entities.
Private investment fund: A form of capital raising to a specific group of investors such as individuals, organizations, corporations, or financial institutions. With a large investment capital, they have the right to decide and control the investment activities of the fund.
Based on the investment purpose:
Securities investment fund: Capital raised in this fund will focus on securities investment activities. This fund is suitable for small investors who do not have much experience and time but still want to increase their assets through the stock market.
Development investment fund: The purpose of raising capital for this fund is to build and develop a specific area, company, or organization.
Venture capital fund: This form allows investors to invest in potential projects but with high risks. The fund may invest in startups, unlisted stocks, or socially impactful projects.
Based on the organizational structure and operations:
Contract-based investment fund: The fund does not have legal personality but operates as a representative delegated by other investors to ensure the highest profit for the investment portfolios.
Company-based investment fund: A unit established with legal personality, complying with the regulations of the State, having a full board of directors responsible for management, operation, and control of investment activities.
Investment Funds in Vietnam
Currently, investment funds in Vietnam are vibrant with diverse investment portfolios for customers to choose from. Below is a list of reputable investment funds in Vietnam:
These investment funds in Vietnam are operating vigorously with diverse investment portfolios for customers to choose from.