5 criteria for choosing a safe and effective investment fund
17/02/2023
In the rising trend of fund investment, choosing a safe and effective investment fund is a matter of top concern for many investors. So what criteria should be used to evaluate the safety and effectiveness of an investment fund?
Choose a reputable and capable fund management company
Choosing a reputable and capable fund management company is the first factor investors need to consider when choosing a safe and effective investment fund.
When investors have idle cash flow and decide to choose an investment fund to start investing for profit, the first criterion to consider is the capacity of the fund management company in the market.
Whether an investment fund is safe and effective or not depends largely on the capacity and reputation of the fund management company. Because the profit that the fund brings will be based on the investment implementation capacity of that company.
A reputable and capable fund management company in the market is evaluated by factors such as:
Management capacity, investment experts, extensive knowledge, solid professional skills in fund investment and ability to well manage the company's investment portfolio
Fund information is publicly and transparently published on platforms for investors to easily grasp.
Investment performance and interest rates are high and stable, always exceeding bank savings interest rates.
To choose an investment fund, investors need to carefully research information about the fund's parent company. Some reputable investment funds in Vietnam include FUNDGO - Creative Startup Investment Fund with fund certificate products. The fund is managed by TRUSTpay Joint Stock Company, a reputable fund management unit with leading investment efficiency in the market.
FUNDGO Investment Fund Currently managed and advised by a team of leading prestigious experts with experience and in-depth knowledge in a variety of fields. The team of experienced and highly reputable experts in the market allows FUNDGO to expand its investment activities and finance many innovative start-up projects at home and abroad.
Investment fund profit
Besides choosing a fund management company, investors also need to pay special attention to the profits of that investment fund in recent times.
To evaluate an investment fund according to this criterion, investors need to consider aspects such as: how to calculate the fund's profits, the expected profit level corresponding to the fund's efficiency, etc.
The profit of the investment fund is calculated by time or by cumulative profit. To show the investment efficiency most easily, most fund management companies will choose to calculate by time. The profit of the investor is affected by different calculation methods, so it is necessary to pay attention to choosing a reasonable investment method.
In addition, when investing, the higher the profit, the higher the risk and vice versa. Therefore, investors need to determine their expected profit level to find the safest and most effective investment fund for themselves.
The return of an investment fund is a testament to the performance of a safe and effective investment fund.
Currently, a good profit margin is usually in the range of 12 – 20%/year. With investment funds with profit margins in this range, investors can consider and consider some other criteria to decide to invest.
Pay attention to your portfolio
Investment portfolio must be transparent
Experts say that a safe and effective investment fund is also reflected in the portfolio in which the fund is investing.
The fund's investment portfolio must be transparent and presented specifically to investors in the initial strategy. Along with that, the level of risk that may occur through the fund's regular investment in which types of assets.
Liquidity Assessment
The next criterion that investors need to pay attention to is the liquidity of the fund. Specifically, investors need to monitor and evaluate the ability to match orders and the number of transactions over a certain period of time that the investment fund is implementing.
Stable liquidity and regular daily and weekly trading volume are the clearest evidence of a safe and effective investment fund.
In addition, investors also need to pay attention to the fund's transaction fees such as: fund management service fees, transaction fees for buying and selling fund certificates. A good investment fund often has low transaction fees, applied in a short period of 1-2 years.
Procedures for opening an account and implementing investment
Delays in opening investment accounts for customers and prolonging the time will also reflect on whether the investment fund is safe and effective or not, as well as the capacity of the fund management company.
The issue of opening an account is not too important for some investors. However, to avoid spending a lot of effort, money, and time on opening an account and making transactions, investors also need to pay attention to this issue.
Therefore, investors should prioritize choosing the type of fund that allows opening an online account, making transactions and monitoring daily performance on the application to ensure timely updates on information and investment progress.
Above is basic information about the criteria for choosing a safe and effective investment fund. Hopefully, readers have obtained useful information, to confidently make investment choices in fund certificates that are suitable for their strategic goals. Wish you success!
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