Currently in Vietnam, investment fund formats are increasingly developing and providing a variety of investment options for customers. Below, we will share the concept as well as a list of reputable investment funds in Vietnam for you to consider in making appropriate investment choices.
What is an Investment Fund?
An investment fund is an intermediary financial institution or entity with the ability to raise capital from various sources. The raised capital will be invested in various categories such as stocks, bonds, currencies, and other types permitted by the State depending on the investment appetite of each fund. It will be publicly and transparently disclosed by the fund so that investors can choose an investment appetite suitable for themselves.
Investment funds converge professional personnel with specialized knowledge and skills in the market to be able to advise and support investors in choosing suitable investment projects.
Classification of Investment Funds in Vietnam
Based on the capital movement structure:
Closed-end Fund: The issuing entity will not buy back the fund certificates sold after the fundraising period but will list them all on the stock exchange.
Open-end Fund: The fund is managed by a specific organization to raise capital from the public. The raised funds will be invested in securities, and profits will be distributed back to investors. Fund certificates sold will be repurchased by funds at any time.
Based on the source of capital raising:
Collective Investment Fund: It is a form of public capital raising to small investors to reduce risks, diversify portfolios, and maintain low costs. This fund is usually for individual investors or legal entities.
Private Investment Fund: It is a form of capital raising to a specific investment group 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: The 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 the fund's capital raising is to build and develop a certain 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 organizational structure and activities:
Contractual Investment Fund: The fund does not have legal personality but operates as a representative delegate from other investors to ensure the highest profit for investment portfolios.
Corporate Investment Fund: A fund established as a legal entity, complying with state regulations, with a full board of directors responsible for management, administration, and control of investment activities.
Investment funds in Vietnam are currently vibrant with diverse investment portfolios for customers to choose from. Here is a list of reputable investment funds in Vietnam: