Vietnam’s Top Performers Shine
A recent report from Fmarket reveals that most open-end funds in Vietnam have outperformed the VN-Index over the past eight months. The report covers nearly 50 open-end funds managed by leading fund management companies in the country.
VMEEF Leads the Pack
The VinaCapital Modern Economy Equity Fund (VMEEF) stands out with an impressive 32.84% profit margin. This performance significantly surpasses the VN-Index’s increase of just 13%. Despite its establishment in May 2023, VMEEF has quickly become a leader in equity fund performance.
Investment Focus and Strategy
VMEEF targets stocks expected to grow in revenue and profits over the long term. The fund aligns its investments with Vietnam’s key economic drivers, including urbanization, a growing middle class, and digitalization.
As of late July, VMEEF’s notable investments include:
- FPT Telecom (FOX) in information services
- Vietcombank (VCB)
- Asia Commercial Bank (ACB)
- Vietinbank (CTG)
- MBBank (MBB)
- Bảo Việt Holding (BVH) in insurance
- IDICO Corporation (IDC)
- REE Corporation (REE)
- Imexpharm Corporation (IMP) in healthcare
Other High-Performing Funds
Following VMEEF, SSI Asset Management’s SSISCA and VLGF funds rank second and third, respectively, with profit margins of 29.68% and 27.74%.
Several other open-end funds have also delivered strong results, including:
- Bảo Việt Prospect Equity Fund (BVPF)
- VCBF Blue Chip Fund (VCBF-BCF)
- Mirae Asset Vietnam Growth Equity Fund (MAGEF)
- DC Dynamic Securities Fund (DCDS)
- Vinacapital Equity Opportunity Fund (VEOF)
- Vinacapital-VESAF
- Manulife Stock Investment Fund (MAFEQI)
These funds have all achieved profits exceeding 20%, outperforming the VN-Index’s 13.63% growth rate.
Market Insights and Future Outlook
The report from Fmarket highlights that Vietnam’s economy is gradually recovering. Open-end funds are demonstrating effective investment strategies that capitalize on market opportunities, resulting in notable profits.
Despite recent global financial market volatility, Vietnam’s domestic economy continues to show robust recovery. Growth in manufacturing and services is driving profits for open-end funds.
Fmarket advises investors to focus on long-term strategies, regular investments, and portfolio restructuring to build sustainable wealth. The economy has shown positive trends in the first eight months of the year, with experts forecasting an increase in GDP growth from 5.1% in 2023 to 6.5% in 2024.
Low interest rates are also supporting businesses by providing easier access to capital for production and recovery. Although global market fluctuations influence short-term sentiment, analysts remain optimistic about Vietnam’s long-term stock market potential, citing upcoming regulatory changes and market upgrades as positive factors.
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