GTJA – As deposit rates decline and the stock market rises, open-ended funds are gaining popularity among retail investors as a balanced investment option. Their strong performance, liquidity, and professional management suggest they will remain a preferred choice for long-term investors in Vietnam.

 

Stock market momentum drives fund growth

In August 2025, the VN-Index climbed 11.96% to 1,682.21 points – its strongest monthly gain in over seven years. Year-to-date, the index has advanced 32.8%, surpassing the combined growth of 2023 and 2024 (Thị trường Tài chính Tiền tệ, 08/2025).

This positive momentum led to strong returns for many open-ended funds. On the Fmarket platform, several equity funds posted double-digit gains in August, outperforming the VN-Index (Thị trường Tài chính Tiền tệ, 08/2025).

Long-term results are also strong. As of June 30, 2025, VinaCapital VESAF reported an average annualized return of 22.9% over five years, more than twice the VN-Index’s 10.8%. SSI-SCA (19.9%), DCDS (19.2%), and VEOF (19%) also delivered solid growth (Diễn đàn Doanh nghiệp, 07/2025).

Why Open-ended Funds appeal to Investors?

Professional management and consistent long-term returns

Open-ended funds are managed by experienced professionals, providing investors with the confidence of proven, long-term performance.

Diverse products for various risk profiles

The Vietnamese market provides a range of options, including equity, bond, balanced, and money market funds, enabling investors to select products that match their risk preferences.

• Equity funds offer strong growth potential and are suitable for long-term investment goals. 
• Bond funds offer safety and stability, making them an ideal choice for conservative investors.
• Balanced funds strike a balance between growth opportunities and capital preservation.

Flexible liquidity and low entry requirements

Investors can participate with a modest initial investment, and redemptions are typically available on a daily or weekly basis. These features make open-ended funds a compelling alternative to traditional savings options.

Supportive macro environment

1. Lower deposit rates are driving capital toward higher-yielding channels.
2. Anticipation of Vietnam’s market upgrade adds to investor confidence.
3. Pro-growth policies under “Đổi Mới 2.0” reinforce long-term optimism (Thị trường Tài chính Tiền tệ, 04/08/2025).

Challenges & Real Market Flows

Despite strong returns, open-ended funds still face redemption pressure. In the first seven months of 2025, net outflows totaled VND 13.4 trillion, which was 7.8% lower year-over-year. Notably, in July 2025, bond funds recorded net inflows of VND 1.3 trillion—the highest in nine months (VnEconomy, 08/2025).

This indicates that retail investors remain cautious but are increasingly viewing bond and balanced funds as safer choices during periods of market volatility.

Conclusion

Open-ended funds in Vietnam are becoming an increasingly attractive investment channel due to their strong long-term returns, diverse product offerings, easy accessibility, and a supportive macroeconomic environment. Although short-term redemptions persist, the long-term outlook suggests increased adoption, positioning these funds as an important means for retail investors to access the stock market professionally and sustainably.

To begin investing, consider Fundmart, Guotai Junan (Vietnam) Securities’ open-ended fund platform:

• Start investing from just VND 10,000.
• Diversified portfolios tailored to financial goals and risk profiles.
• Convenient online trading and portfolio management.
• Free advisory support from experienced professionals.

👉 Learn more about our open-ended fund offerings at: https://gtjai.com.vn/en/fundmart-open-ended-mutual-funds/