Intro

VU DUC SUU
Head of Passive & Rule Based Strategies
M +84 9 0908 4243
E suuvu@dragoncapital.com

DRAGON CAPITAL VIETFUND MANAGEMENT

15th Floor, Me Linh Point Tower, 02 Ngo Duc Ke,
District 1, Ho Chi Minh City, Vietnam
dragoncapital.com
Understanding Investment Funds:
Active & Passive
May - 2024
 Who is working
and has a salary?
Who still receives lucky
money? How much lucky
money have you accumulated
so far?
Who has ever won
the lottery (Vietlott)?
Who has the potential to
receive an inheritance
(thừa kế)?

WHAT TO DO WITH YOUR MONEY?

Content
1. Introduction
2. Active Funds
3. Passive Funds
4. Comparison
5. QA
What are Investment Funds?
• Investment funds are pools of money collected from multiple investors to
invest in various securities such as stocks, bonds, or other assets.
What are Investment Funds?
• Types of investment funds include mutual funds, exchange-traded funds
(ETFs), money market funds (MMF), and hedge funds.

ACTIVE FUNDs

PASSIVE FUNDs
Investment Funds vs Self-Directed Investing
Active Funds
Active funds are managed by professional portfolio managers who
actively buy and sell securities with the goal of outperforming the market
or a specific benchmark.
Example: https://dragoncapital.com.vn/
History
Global Vietnam
Passive Funds
Passive funds, also known as index funds, aim to replicate the
performance of a specific market index, such as the BTC, gold,
VN30…, rather than trying to outperform it.
Example: https://dragoncapital.com.vn/
History
Global Vietnam
Comparison
 Characteristics of Active & Passive Funds
Active Passive

• Research-intensive approach • Minimal buying and selling of

• Frequent buying and selling of
securities
• Higher fees due to management
costs and transaction fees
securities
• Low management fees
• Follow a rules-based approach to
mirror the index
Advantages of Active & Passive Funds
Active
• Potential for higher returns
• Ability to adapt to market
conditions
• Active management aims for
capital preservation and growth
Passive
• Lower fees result in higher net
returns
• Eliminates the need for stock
picking or market timing
• Generally more tax-efficient due
to lower turnover
Disadvantages of Active Funds
Active Passive

• Higher fees can reduce returns • Limited potential for

outperformance
• Performance can vary widely
• Lack of flexibility in responding
• Not all active managers beat the to market changes
market consistently
• Huge impact by market
downturns
QA