The proposal suggests adding two new types of investment funds.

The State Securities Commission has proposed adding two new types of investment funds to develop the fund management industry.

The Ministry of Finance and the State Securities Commission are seeking broad feedback from units, organizations, and individuals on the Draft Circular amending and supplementing a number of articles of Circular 98/2020/TT-BTC dated November 16, 2020, guiding the operation and management of securities investment funds.

According to the State Securities Commission's submission, the amendment is an urgent requirement to concretize the Party and Government's policies on capital market development and promote the fund management industry as an important medium- and long-term capital mobilization channel for the economy . In the draft, the drafting agency proposes adding two new types of funds and adjusting the investment activities of index funds to diversify products on the market.

Two new types of investment funds will be introduced to the stock market.

PHOTO: NGOC THANG

Firstly, supplement the Infrastructure Bond Investment Fund. This is a closed-end fund that invests at least 65% of its net asset value in bonds issued for infrastructure development, government debt instruments, government-guaranteed bonds, local government bonds, deposits, and certificates of deposit. The goal is to mobilize medium- and long-term capital for infrastructure projects, in line with Resolution 68 of the Politburo on the development of the private economy and the mobilization of social resources for socio-economic development.

Secondly, there are Money Market Funds (MMFs). These are open-ended funds that invest at least 80% of their net asset value in deposits, certificates of deposit, government debt instruments, and short-term fixed-income assets (under 12 months). This is a popular fund model internationally, suitable for investors seeking highly liquid, low-risk products with stable returns.

The draft also adds a risk prevention mechanism for index funds, regulating the handling of discrepancies between the fund portfolio and the benchmark index, aiming to enhance transparency and facilitate the development of domestic ETFs – an important component of the modern capital market. Simultaneously, the draft adds a liquidity management mechanism for open-ended funds, allowing fund managers to apply flexible measures such as partially fulfilling sell orders, temporarily suspending trading of fund units, or applying a “liquidity hedging” level. These are measures recommended by the International Organization of Securities Commissions (IOSCO) to limit systemic risk...

Source: https://thanhnien.vn/de-xuat-co-them-hai-loai-hinh-quy-dau-tu-moi-185251113113137299.htm