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Open - Ended fund

26/03/2016 11:41 AM
Introduction

What is Open-ended Fund?

An open-ended fund is a mutual fund which means it is a pool of assets contributed by many investors pursuing the same, common investment objective. Open-ended fund is managed by professional fund management companies and regulated by special laws to ensure that normal investors can benefit from pooling their savings with other investors.

Investment in open-ended funds is a form of indirect investing in securities. Instead of receiving shares or bonds of a company directly as if the investor had invested directly in a company, an investor in an open-ended funds receives units in the fund. These units are the investor’s holdings of the fund’s pool of assets. If the open-ended funds perform well, the assets under management of funds will increase in value which means the unit’s value increases too for all the investors.

Suitable for whom?      

  • Investors do not have specialized financial knowledge
  • Investors are busy and have no time to analyze the markets every day
  • Investors want to diversify in investment
  •  Investors want to invest in long term

Open-ended funds are quite new to Vietnam, but have been in existence in other markets for many years. In America, around half of households are investing in open-ended funds.

Currently, Vietcombank has cooperated with Vietcombank Fund Management  (VCBF) - one of the leading fund management companies in Vietnam to distribute fund certificates to customers of Vietcombank.

Benefits
  1. High return in Long-term

Open-ended fund can capture the generally higher returns of equities as an asset class evidenced historically in many other countries over the long-term. Open-ended fund can navigate cycles of the securities market over the long-term.

  1. Professional Management

Open-ended funds offer investors access to full time, professional investment managers who have the expertise, experience and resource to actively buy, sell, and monitor investment for the investors.

  1. Liquid

In case of an emergency requiring the investor to use funds, it's easy and quick to withdraw some or all of the money you've invested.

  1. Affordable

Initial investments in most funds are reasonable. Less than US$250 are required for initial investments and only US$50 for subsequent or regular monthly investments

  1. Safety

The fund management company and open-ended funds are established and operated by the law.

Open-ended funds are closely monitored by State Securities Commission (SSC), a supervisory bank and an auditing company, which is always focused on the safety of investors.

  1. Diversified

Open-ended fund usually holds stocks representing different companies, different industries. This diversification can help reduce risk inherent in investing.

Product Features

Depending on the specific needs of preservation, growth or capital balance, customers can choose the appropriate type of open-ended funds to invest, specifically as follows:

Name

Investment objectives

Investment strategy

Detail information

VCBF Tactical Balanced Fund (VCBF – TBF)

The fund seeks long-term total return via growth of capital and current income

The fund invests in a diversified portfolio of listed common stocks, primarily in stocks with large market capitalization and Vietnam Government bonds, municipal bonds or bonds guaranteed by the Government or high quality listed corporate bonds.

For more information, please click here.


VCBF Blue Chip Fund (VCBF – BCF)

Primarily to provide medium to long term capital appreciation.

The Fund will primarily invest in a diversified portfolio of stocks listed on the Ho Chi Minh Stock Exchange (“HSX”) and the Ha Noi Stock Exchange (“HNX”) which have a large market capitalization and are liquid. Stocks with large market capitalization are considered as those with market capitalization larger than the hundredth largest stock listed on the HSX.

For more information, please click here.


VCBF Fixed Income Fund (VCBF – FIF)

Preserve initial capital and to generate regular income by investing in fixed income assets.

The Fund will maintain a diversify portfolio of high quality fixed income assets, mainly Vietnam Government bonds, Government backed bonds, municipal bonds and high quality corporate bonds.

For more information, please click here.

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How to invest

Initial subscriptions

Customers fill out the Application Form, provide of your ID card (with the original for verification) and transfer the amount to fund’s account at the supervisory bank. 

Subsequent subscriptions

Customers fill in the Subscription Order Form and transfer the amount to fund’s account at the supervisory bank. 

Fund unit redemptions

Customers fill in the Redemption Order Form and send to the fund management company to execute the order

For more information, please click here.​​​​​​​

Fees

Please refer to the service fee here​​​​​​​

Reference information

VCBF is a joint venture of Vietcombank and US fund management corporation, Franklin Templeton Investments (FTI). VCBF applies an effective investment strategy acquired from over 72 years of FTI's global fund management experience.

VCBF has been investing in Vietnam since 2005 and is investing in securities, effectively managing assets for more than 3,000 individual investors and many financial institutions and large corporations of Vietnam and abroad.

In particular, VCBF's team of experienced analysts and portfolio managers with high professional qualifications can evaluate the development strategies of each business from different angles with information provided from two parent companies, Vietcombank and FTI.

VCBF always puts the interests of Investors at the center of all activities.