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Systematic Investment Plans (SIP)

sip

WHAT ARE SYSTEMATIC INVESTMENT PLANS (SIP)?

A SIP is a saving program that allows investors to save a fixed amount of money regularly every month by purchasing additional Units of the Fund.

WHY SHOULD YOU DO A SIP?

It helps you to achieve your financial goals with a small amount accomulated each month.

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Most of us calculate our earnings and expenses on a monthly basis, so saving monthly is the easiest to plan.

SIPs are the most effective form to invest and build up saving.

WHAT ARE THE BENEFITS OF SIPS?

The Power of Compounding

The longer the period of your investment, the more you accumulate, because of the power of compounding.

The below table shows to how much your monthly investment can grow, at different rates of return and over varied time horizons. Consider if you invest VND 1,000,000 per month through an SIP:

Rate of return

Time horizon

 

5 Years

10 Years

15 Years

20 Years

25 Years

10%

77,437,072

204,844,979

414,470,346

759,368,836

1,326,833,403

15%

88,574,508

275,217,058

668,506,759

1,497,239,481

3,243,529,615

20%

101,758,208

376,095,300

1,115,699,905

3,109,651,838

8,485,286,707

Cost Averaging

A SIP is an ideal way to deal with market volatility. Investing a fixed amount of money at regular intervals, irrespective of market conditions enables you to buy less when prices are high and buy more when prices are low.

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Notes:
1) NAV at the Trading Day per Unit on each Trading Day
2) Average Unit price if fixed number of Units bought on each Trading Day
3) Average cost per Unit if fixed amount of money invested at NAV at the Trading Day on first Trading Day of each quarter

Inflation compensation

Historically in many countries, equities are acknowledged to have potential to deliver returns higher than inflation. Hence, investing in equity open-ended funds over the long term through a SIP can help you create wealth over time.

Affordability

For a new investor that is opening an account, the initial investment under the SIP is VND5,000,000 (five million Vietnam Dong).

For monthly SIP subscriptions, the minimum amount is VND1,000,000 (one million Vietnam Dong).

SIPs have a minimum duration of 1 (one) year.

Discount on Subscriptions under a SIP

A discount of 20% of the Subscription Fee will be made to investors that agree to make a SIP for 12 consecutive months.

Convenience

Vietcombank and many banks in Vietnam offer services for individual and corporate customers that can support investors making a SIP. Standing instructions to your bankers can enable a SIP to be completed with the amount and with the frequency set so that investments for the SIP are made without the need to submit further bank instructions.

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