Passive investing is gaining traction among stock investors in Vietnam, though it is not a new concept and is prevalent in developed financial markets and regional countries.
As investors seek to diversify their portfolios, many opt to allocate a portion of their capital to equities. However, maximizing profits during favorable periods and managing risks amid market volatility pose significant challenges.
Many investors lack the time to constantly monitor stock movements and lack the expertise and experience to construct efficient portfolios. This is where passive investing comes into play, offering a solution that a significant portion of investors are opting for.
Various investment products are available in the market to meet this demand, such as exchange-traded funds (ETFs), open-end funds, and closed-end funds. Notably, securities companies provide tailored solutions by designing sample investment portfolios for their clients to choose from.
ETFs offer a basket of stocks with predetermined weights, as determined and disclosed by the index-building organization. On the other hand, active fund portfolios or sample portfolios bear the imprint of the fund managers. Investors benefit from the expertise of professionals who devise scientific, disciplined, and professional trading strategies, akin to those employed by institutions. Additionally, these experts assist investors in cultivating a habit of regular wealth accumulation and periodic investment, rather than following the investment trends of the crowd.
VPBank Securities (VPBankS), driven by its mission to foster client prosperity, has identified sample portfolios (ePortfolio) as a strategic product to support clients who choose self-investing. These portfolios are crafted by a team of experts with 20 years of market experience.
The VPBankS sample portfolios are a result of collaboration between market analysis experts, investment strategy experts, and risk management specialists. Market analysts continuously monitor and evaluate market factors to inform decision-making. Investment strategy experts bring years of experience in portfolio construction and management. Meanwhile, the risk management team optimizes profits while mitigating risks. This integrated approach ensures that investors can address the aforementioned challenges through a well-designed sample portfolio.
With a minimum capital of just 10 million VND, investors can access VPBankS’s ePortfolio product. Besides offering high convenience, the VPBankS team of experts is particularly focused on delivering effective investment strategies.
The investment portfolios are structured periodically based on pre-announced principles to optimize performance and ensure alignment with expected trends.
Over the past year (up to July 26), most of VPBankS’s ePortfolio strategies have achieved double-digit investment returns, outperforming the broader market.
For instance, the Competitive Advantage portfolio generated a profit rate of over 55% in the last 12 months, nearly triple the increase of the VN-Index. Since the beginning of the year, this portfolio has yielded a profit rate of 31.37%, compared to the market’s increase of 9.75%. This profit rate is among the top performers in the market.
Observations indicate that VPBankS’s four other sample portfolios are also outperforming the market, with expected upside potential in double digits, showcasing the portfolios’ promising prospects.
The superior performance of VPBankS’s sample portfolios has led to satisfied clients who have embraced and praised the product.
As a result of this positive reception, the assets under management (AuM) for VPBankS’s ePortfolio product have grown steadily on a monthly basis. By offering a viable investment solution and promoting the trend of individuals investing through organizations, this product contributes to market stability, which is a goal pursued by the government and market regulators.
Analysis of Investment Strategies of Funds in 2023
With a dynamic strategy, major investment funds in the past year have achieved outstanding profitability compared to the VN-Index. Analyzing the investment strategies and portfolio allocation of these funds provides us with additional insights to make investment decisions in 2024.
