Diversification is to minimize against market downturns: Financial expert

Mr. Lam Minh Chanh, a personal finance expert, said that in this context of black swans, world-changing events that are rare and difficult to predict, it is necessary to diversify investment channels to minimize against market downturns.

 

Diversification is to minimize against market downturns: Financial expert ảnh 1 At the seminar 

At the seminar "Property management, prosperous future" held in Ho Chi Minh City on October 15, financial experts said that investors earn a lot of money through traditional and popular investment channels such as gold, securities, and real estate.

However, in the context of financial market fluctuations, with the appearance of the phenomenon of the black swan (this concept refers to unpredictable and unpredictable phenomena that cause negative consequences for the economy) has made many investors lose.

While the global economy is facing difficulties, a World Bank report revealed that more than 90 percent of developed economies, 80 percent of developing economies and emerging markets are downgraded growth forecasts for this year and next year.

Although Vietnam has a stable macro-economy, investment channels face many fluctuations. The stock market wobbled while domestic gold fluctuated and there is a huge gap in gold prices between Vietnam and the world and the real estate market stalled; worse, corporate bond investment faced many risks, especially the bond market. In the past time, there have been many incidents in the bond market that make many people decide to spend their money buying corporate bonds for stable profits and long-term safety.

There are many investment fund certificates that can give good returns but low risk because the capital is entrusted to reputable investment funds and highly specialized investors. In addition, investors can possibly pour their money into investment-linked insurance products.

Ms. Nguyen Thu Ha, Techcombank retail business development director, also said that many investors are also interested in the insurance channel combined with Legacy investment because it is a financial solution to help individual investors save a lot of time, money and effort.

Specifically, the Legacy solution with 12 diversified investment funds can help individual investors and businesses, depending on their investment taste, choose to allocate capital to funds with high profitability such as growth and development funds. Those who need safety can choose funds with medium and long-term stable rates of return such as balanced, stable, or cumulative funds.

She revealed despite the market volatility, in the last 5 years, the unit-linked funds included in Legacy have recorded actual returns ranging from 14.3 percent to 92.5 percent depending on investment type.