Open-ended funds in Vietnam are more and more popular and interested by many people. Many people think that investing in open-ended funds is high and safe. Others believe that open-end funds are deceptive and unreliable. So, where is the truth? Is mutual fund investment safe? See the end of this article to equip yourself with the method How to invest in open-ended funds? the most effective.

What is an open-end fund?

What is an open-end fund? An open-ended fund is roughly understood as an investment created by many contributors. Open-ended funds will generally have no limit on the amount of contributions and the number of participants. Investors have the right to decide how long to contribute capital and can withdraw capital whenever needed.

What is an open-end fund?

When investors contribute capital to an open-ended fund, they will receive fund certificates. Fund managers will use the money in the fund to invest in order to generate profits for capital. This is what helps fund certificates increase in value over time and generate profits for investors.

Essentially, open-end funds work in a circle like this:

– Investors contribute money to the open-ended fund by buying fund certificates.

Fund managers use money to buy financial assets: stocks, bonds, etc.

– After a certain period of time, asset classes generate profits. The value of fund certificates increased.

– Investors resell fund certificates and withdraw profit and principal.

Benefits of investing in open-end funds

Open-ended funds exist for what? What are the benefits of open-ended funds for investors? In fact, open-ended funds were born many years ago and are well received by most investors for the following reasons:

Benefits of investing in open-end funds

– Firstly, you can invest in buying fund certificates with low cost. Just need capital from a few million, even a few hundred thousand, you can also invest in the form of buying fund certificates. This, compared to other forms of investment such as bonds, securities or real estate, etc., open-ended fund certificates completely dominate.

Second, the investment in open certificates is extremely flexible. You can invest at any time as long as you have a phone and an internet connection. You can also withdraw funds at any time you want.

– Third, safety and stable profits: Open-ended funds are managed by experienced professionals. They know the right times to invest and help your capital pay off over time. You can rest assured that they will have appropriate responses whenever the market fluctuates. So don’t worry about losing money.

Fourth, fund certificates operate on a transparent and professional basis. Open-ended fund institutions have been active in the market for many years. They are managed and supervised by the Vietnamese legal system. All their activities are also transparent, financially and legally.

How to invest in open-end funds? – Who are open-ended funds suitable for?

Because of outstanding advantages such as flexibility, safety and high profit. Therefore, open-ended funds are absolutely an investment channel suitable for everyone. Those who want to increase profits and generate a passive income stream are well suited to investing in open-end funds.

How to invest in open-end funds? - Who are open-ended funds suitable for?

With some of the following criteria, please compare with your own needs to see if you are suitable when investing in open-ended funds!

Investors want to generate passive income.

– You have small capital but still like to invest.

– You do not have time to research about new fields such as securities, cryptocurrencies, etc.

– You are new to the financial market, you do not have much experience.

– You want to have convenience, fast transactions and receive expert support.

– You are investing in stocks, bonds or real estate and you want to diversify your investment.

– You are looking for an investment channel that is safe, effective and easy to join.

Is it safe to invest in open-end funds?

In 1924, the Massachusetts Investors’ Trust was established in Boston, USA. It is the world’s first publicly traded fund organization. After realizing the benefits of open-ended funds, open-ended fund organizations have appeared around the world and spread to Vietnam in the past few years.

Is it safe to invest in open-end funds?

Many people are learning about the open-end fund investment channel and wonder if it is safe to invest in open-end funds? To know if an open-end fund is safe, learn the separate information of each fund. Here are a few things you need to know when learning about the safety of any type of open-ended fund:

– When do you want the open-ended fund to be born? This fund is managed by which unit or organization?

– Is the fund supervised by a bank?

– What are the transfer agents?

– How much capital does the fund currently have?

– What financial assets are used to invest in financial assets?

– Have they paid interest to investors, on time? Do they support investors?

One of the reputable open-ended funds can be mentioned such as: Vinacapital’s open-ended fund, Prudential’s open-ended fund, vcbf open-fund investment, etf-open-fund, ifund-open-fund… you can find out and choose a suitable investment channel. .

How to invest in open-end funds? Distinguish between open-ended and closed-end funds

How to invest in open-end funds? - Distinguish between open-ended and closed-end funds

Open Fund

– More liquidity. Investors can resell fund certificates to the fund company when they want. Types of open-ended fund assets are usually stocks and bonds listed on the exchange.

– The high cash reserve in the fund helps the fund to quickly pay investors.

– When trading, investors only bear the transaction costs of the fund company, the fee is quite low.

– Investors can buy and sell fund certificates directly with the fund management company.

– Open-ended fund certificates are distributed continuously at banks, securities companies and fund management companies.

– Operating time of open-ended fund certificates is completely unknown, depending on the investor.

– The price of open-ended fund certificates also fluctuates quite low in the market.

Closed Funds

Closed-end fund certificates have lower liquidity. Due to the long trading time on the stock market. Closed-end fund certificate assets are mostly OTC stocks or investments in businesses.

– The cash holding ratio of the fund is quite low, most of the capital is invested.

– When trading closed-end fund certificates, investors will bear transaction fees. And the rate depends on the volume of transactions that can be lower or higher than the floor trading level.

– Closed-end fund certificates are distributed only when the management company raises capital for the first time or increases its charter capital.

– The capital size when investing in closed-end fund certificates is stable until maturity.

– Long investment period, high price volatility.

How to invest funds?

Three criteria for selecting funds

Three criteria for selecting funds

Investment strategy

To make your investment work, learn about the fund’s investment strategy. Specifically, which portfolios are fund managers focusing on, and how much is their capital allocation ratio in each category?

Investment expert team

The condition that determines the success of the fund is the leaders. They are the ones who decide where your investments go, effective or not? Be careful and study carefully about information management experts, how experienced they are. Besides, the fund with a good reputation in safety depends a lot on the custodian bank.

Review of the fund’s past returns

The Fund will update the operation information in the previous years publicly on the Fund’s official website. You can refer to this information quickly. Understanding this will help you make the best choice of which fund to invest in.

Other factors should also be considered such as how much the fund costs, including fixed costs and monthly costs you need to pay for the fund, participation and withdrawal fees, etc.

Normally, the fund management fee will be calculated according to the formula:

Management fee = [Phần trăm x (NAV tại ngày định giá) x (số ngày thực tế trong kỳ)]/ 365

Steps to invest in open-end funds

Each fund management company will have separate regulations and fees. To be able to participate in investing in their company, you need to comply and accept the terms they have set forth.

Steps to invest in open-end funds

In general, to invest funds you will have to perform the following steps:

– Step 1: First, you need to create an account at the fund company you want to invest in. Create an account at distribution agents selling fund certificates or create directly at the website of the fund company.

– Step 2: Fill in the necessary personal information, verify the account correctly. This is extremely important, the information needs to be accurate and carefully secured to ensure your account is not hacked.

Step 3: Deposit money into your account.

– Step 4: Place an order to buy fund certificates.

Step 5: After the fund is purchased, you will receive a successful notification.

Track an investment in an open-ended fund

After you have successfully purchased fund certificates, you need to regularly log in to your account, update whether your investments are profitable or not. In addition, the fees incurred during the investment process also need to be transparent, you must make sure you understand them well and that it is true to the initial agreements committed.


Above is all the basic knowledge of how to invest in open-end funds. You can refer to information from other sources to make sure you have a clear understanding of fund investing. This is really an effective investment channel for newbies. However, you need to be careful to choose a reputable fund company. Good luck with your investment!


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