Market turmoil: What’s the strategy for investors?

Lately, Vietnam’s stock market has undergone notable swings, with the VN-Index facing repeated corrections and instability. These movements have been fueled by geopolitical tensions, including tariff policies, exchange rate pressures, and ongoing net selling by foreign investors.In this context, what can investors do?

Volatility can be seen as… a test for investors. It doesn’t mean inaction – it’s a chance to recalibrate strategies and strengthen long-term investment fundamentals.

Portfolio restructuring: Reducing risk, enhancing efficiency

During market turbulence, portfolio restructuring should be a priority. Investors should retain fundamentally strong, industry-leading stocks with stable growth, while exiting weaker, low-potential positions. New investments require caution – avoid panic selling and chasing price spikes.

Instead of chasing short-term gains, investors should consider adding low-risk products to enhance portfolio safety and liquidity. Another effective solution is to replace individual stock picks with thematic portfolios curated by securities firms based on market research – such as PineFolio.

This approach invests in sectors aligned with specific economic, corporate, social, or technological themes, rather than individual company industries. It offers investors opportunities for sustainable growth and balanced asset allocation suited to their capital.

This is an investment approach based on sector groupings categorized by specific economic, corporate, social, or technological themes, rather than focusing on individual companies. This strategy provides investors with access to portfolios with long-term growth potential while enabling more effective asset allocation aligned with their available capital.

In addition, bonds are an effective investment option, offering both safety and enhanced returns. A prime example is PineB – a corporate bond investment solution developed by Pinetree – designed to deliver attractive yields while maintaining a high level of safety for investors.

Notably, customers can enjoy special incentives with PineB on the last two days of each month and the first day of the following month, providing a significant advantage. Furthermore, investors have the flexibility to choose from a wide range of maturities, from 14 to 180 days, with a minimum investment of just one million VND.

Additionally, investors can explore corporate bond investment solutions offered by other securities firms, such as DBOND from VNDirect or iBond ProX from TechcomSecurities.

Optimizing fees: Maximize long-term investment returns

When executing transactions, investors must allocate a portion of their capital to cover various fees, including trading fees collected by the

Stock Exchange and service fees set by the securities firm. These typically range from 0.1% to 0.35% for each matched buy or sell order.

For sell orders, investors are also subject to a 0.1% personal income tax, which is withheld at source and remitted by the securities company in accordance with regulations.

For example, if an investor purchases 1,000 shares of DHG at 106,000 VND per share, the total transaction value amounts to 106 million VND. Assuming a trading fee of 0.25% (comprising 0.03% charged by the exchange and 0.22% by the securities firm), the investor pays an additional 265,000 VND for the purchase.

If the share price rises to 110,000 VND and the investor sells, they will incur a 0.25% selling fee, equivalent to 275,000 VND, plus a 0.1% tax fee of 110,000 VND.

In total, the combined fees for buying and selling reach 650,000 VND, representing 16.25% of the profit from the transaction.

Over multiple transactions, accumulated fees can grow significantly over time. Therefore, investors should fully leverage fee discount program programs to reduce costs by 0.07% to 0.32% per transaction (excluding the 0.03% fee paid to the Stock Exchange and the 0.1% tax collected by securities firms on behalf of authorities).

These incentives may be offered by securities firms either temporarily or for a lifetime. For example, Pinetree, a pioneer in comprehensive digital securities in Vietnam, has provided lifetime free trading since its establishment in 2019, with no restrictions on transaction frequency or value.

Additionally, investors may consider utilizing margin financing incentives to enhance investment efficiency. Competitive margin loan packages, such as P-Zero 0% (0% interest for the first 30 days), P-5.9% per year (interest rate for the first 90 days), and P-6.8% per year (interest rate for the first 30 days), currently available, offer attractive options for investors.

Staying informed with in-depth analysis: The foundation for rational investing

Following in-depth stock market newsletters and reports helps investors gain a clearer understanding of the market and identify trends, providing a solid foundation for effective investment planning.

In response to this need, many securities firms have launched a wide variety of newsletters and analytical reports. For example, Pinetree provides up to 24 stock newsletters and reports each week.

The content covers diverse topics, ranging from basic knowledge, personal finance, and market news highlights to technical analysis and advanced investment strategies. The formats are equally varied, including PDFs, animated graphics, hosted videos, and podcasts.

These materials are presented in a concise, clear manner using simple language and visual aids, making it easier for investors to absorb knowledge and stay updated.

It is clear that despite market fluctuations, investors still have the opportunity to “turn challenges into opportunities” by maintaining a steady mindset and making decisions based on objective data and information.

Portfolio restructuring, prioritizing low-risk products, leveraging preferential policies, utilizing appropriate financial tools, and continuously updating knowledge will help investors not only minimize risks but also achieve sustainable and positive returns in the future.