Losing money in surfing, should F0 investors invest in open-ended funds with the promise of 10-30%/year profit?

(NLDO) – Short-term swing investing in the stock market has caused many investors to lose money, while some open-ended funds have a profit rate of up to 30%.

In the trading session on January 31, the VN-Index continued to fluctuate in a narrow range around 1,174 points, slightly down from the previous session. The stock market has been moving sideways for many weeks, causing frustration for investors. Not to mention the periods of strong fluctuations, many investors, especially those new to the market (F0), suffered heavy losses.

Ms. Diep Minh (residing in Binh Thanh District, Ho Chi Minh City) is an investor who has participated in the stock market for more than 3 years now. She said that she still holds real estate and banking stocks bought in the VN-Index area of ​​1,500 points. Currently, the VN-Index is around 1,170 points, and the stocks she is holding are still losing at least... 50%.

"It would be a pity to sell, but if I buy at an average price, I don't know when the stock will increase again because the business prospects of the company are not very bright. I have been surfing for 3 years and have only seen losses, so I am planning to research and invest in open-ended funds with an annual return of 15-30%" - Ms. Minh wondered.

Many new investors entering the stock market suffered losses during periods when the VN-Index fluctuated sharply.

Regarding open-end funds, VinaCapital Fund Management Joint Stock Company said that 5 open-end funds managed by the company recorded outstanding performance compared to the reference index in the last 1-year and 3-year periods. In 2023, depending on each open-end fund, the return level reached from 11.2% to 30.9%.

Answering investors' questions about whether to surf stocks with a high risk of loss or research investing in open-end funds, Mr. Vo Kim Phung, Deputy Head of Analysis Department of BETA Securities Company, analyzed the matter. Investing and surfing the stock market requires investors to have professional knowledge of financial statement analysis, business valuation, meeting and contacting company management, understanding of the market, experience and time to be able to make wise buying and selling decisions. However, in reality, not many individual investors can do that.

"Many people prefer to hold their own money to invest, but stock investment is always considered a high-risk investment channel, even very high, when the possibility of losing capital can be up to 50-70%, or even higher if investors use high leverage during periods of sharp market decline," said Mr. Phung.

Fund performance compared to VN-Index in 2023

According to experts, if you are a non-professional investor, investing in an open-end fund will be safer and more profitable. An open-end fund is a type of investment fund in which capital is contributed by many investors with the same investment objectives, professionally managed by a fund management company.

However, according to Mr. Vo Kim Phung, when considering investing in open-end funds, you should carefully research the fund : fund managers, operating methods, investment portfolio, costs and risks.  

Check the fund's performance : return history, return rate and risk.  

Determine your investment goals : expected profit, investment time period, risk appetite, amount of money you can invest.  

Choose the right fund type with your investment goals. Check transaction fees : buying fee, selling fee, management fee.

Investing in open-end funds is different from buying stocks that receive annual dividends.

Open-end fund investment is considered a long-term financial investment method, and may not be suitable for people with high risk appetite and high profit expectations in a short period of time. Investing in open-end funds is different from buying shares of companies that receive annual dividends. When investors need money, they can sell fund certificates on the market or sell them back to the fund itself...

Source: https://nld.com.vn/luot-song-lo-f0-co-nen-bo-tien-quy-mo-kiem-nhuan-10-30-nam-196240131112051194.htm