Deposits are arguably the safest, but the most profitable channel at this point could be securities and real estate.
In recent days, Mr. Hoang Nam – a technology engineer in District 10, Ho Chi Minh City often takes advantage of the weekend to buy land in the suburbs of Saigon. Because, according to him, during the recent epidemic, many investors “stay on the ground”, so the project price may be cheap.
Similarly, Mr. Huu Don (Tan Binh District, Ho Chi Minh City) also chose to invest in real estate with the belief that after Covid-19, real estate would make a breakthrough. However, during this period, both Mr. Hoang Nam and Mr. Huu Don did not dare “inflate” the capital strongly, only invested in land plots of a few billion VND to explore the market.
Meanwhile, in the elderly customer segment, the savings channel is still the first choice. Ms. Thanh Thuy, 60 years old, just retired (Thu Duc district, Ho Chi Minh City) said that, seeing interest rates continuously drop, the interest received from the one billion dong deposit kept decreasing, she also suffered. Currently, she sends 6-month term, the interest rate is only 3.9%.
“Sometimes I want to withdraw, but I do not know which channel will be safer and more profitable, so I stopped”, Ms. Thuy said.
Currently, the economy is heavily affected by the Covid-19 epidemic, so economic experts say that there is no outstanding investment channel in terms of profitability. As noted, investors are choosing investment channels depending on their risk appetite.
According to financial expert Nguyen Tri Hieu, considering the 5 popular investment channels alone: bank savings, real estate, securities, gold and foreign currency, none of the channels are sustainable and bring high profits.
He analyzed, saving Probably the safest channel, but interest rates are falling. Depending on the bank, the reduction varies, ranging from 0.1 to 0.2 percentage points. According to Mr. Hieu, from now to the end of the year, interest rates tended to decrease further. Therefore, bank deposit is the safest channel, but cannot be developed because of low interest rates.
Market commentary Forex, Dr. Hieu commented, from the beginning of the year until now, the exchange rate has not increased much. Therefore, this is not a profitable investment channel in this context.
And about golden channel, the market is witnessing strong fluctuations. The price of gold depends on the economic – political situation and the pandemic. From now until the end of the year, it is likely that, along with the changes in the world, especially after the upcoming US presidential election, will push up the gold price. But still to consider the evolution of the Covid-19 epidemic affecting the gold price. Therefore, Mr. Hieu thinks that there is nothing certain about the future picture of the gold market.
With real estate, Dr. Hieu commented, in the context of Covid-19 still raging in the world and the domestic real estate market did not have much prosperity. However, this is still the main investment channel in the economy. Specifically, the real estate market is always accompanied by economic development. Therefore, when the economy recovers and develops after Covid-19, real estate may go up.
“In my opinion, real estate is the fastest recovery channel after Covid-19”, Mr. Hieu said.
However, according to Assoc. Dr. Nguyen Khac Quoc Bao, Dean of Finance (University of Economics Ho Chi Minh City), the disadvantage of the real estate investment channel is the large capital requirement and the market trend is not clear. Investors are also not sure whether property prices return to real economic value after a long bubble.
Meanwhile, with stock channelLawyer Vo Hoang Vinh said that this channel can be profitable because businesses, after being affected by Covid-19, the value of the stock index will also decrease. This creates an opportunity for investor F0 to participate.
In addition, according to him, there are positive reasons such as the State promoting enterprises to borrow low interest rates, freezing, rescheduling debts, promoting disbursement for public investment. Recently, the stock market boomed in terms of new account registration because Covid-19 in Vietnam was well controlled, so foreign investment funds also started to pay attention. With strong money source and strong liquidity, the stock market will inevitably be active in the near future. However, this channel still has its own risks, especially for those who do not have much knowledge about the market.
From the above analysis, the common point of experts is that in all popular investment channels, each channel has its own advantages and disadvantages. In terms of safety, the bank deposit channel is still the highest, but the profitable channel at this time may be the securities channel.
However, the most important thing is that depending on the risk appetite of each investor, there is a consideration and selection of the right channel for them.