Investment: Choose the right one

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People now have many options to invest in savings such as: banking, gold, foreign currency, real estate, stock and even digital money. However, with unpredictable changes in the economy, people should be cautious to choose a reasonable investment method.

Needs to make the right choice in investment to avoid unnecessary damage.

Still inclined to bank deposit

Regarding the monetary market situation, from now to the end of 2018, experts are very cautious because there are many factors that can make the market turn suddenly. For example, the exchange rate situation in Vietnam in 2017 was quite stable, with no significant increase, but in the first 3 months of 2018, the fluctuations were quite strong. According to the National Financial Supervisory Commission, the exchange rate at commercial banks by the end of February 2018 increased by 0.12%, and the free market rate increased by 0.22%. With positive prospects, the committee predicted that the USD / VND exchange rate in 2018 would increase slightly by 1.5-2%. It is difficult to predict when many experts believe that the US dollar in the world market may weaken in the medium term.

For investment channel as gold savings. This is still quite a safe deposit channel, as well as the "safe place" for assets when there are fluctuations in the currency market. Standard Chartered Bank, Vietnam's experts, expected that world gold price would increase to a limited level in 2018. In addition, with the market focusing on rising interest rates in 2018, gold prices and real interest rates will re-establish a proportional relationship. Therefore, gold may be stable at a low level in the range of $US 1,250-1,375 / ounce. They also said that gold was not seen as a safe place during the recent sell-off, which may be due to concerns about rising interest rates, which was detrimental to gold prices.

It can be seen that gold and US dollar are the two most popular savings channels in Vietnam, but experts are still very inclined to advise saving in banks. According to financial expert Nguyen Tri Hieu, savings in foreign currency can be considered a "good" method in the current situation, but with the expected exchange rate increasing by 1-3%, it should be calculated based on deposit rate and inflation rate. With deposit interest rate around 7%, inflation around 3% today, real interest rate is about 4%, then a bank deposit is still more profitable.

However, the ominous problem here is that it can become a hindrance to depositors as a safe and secure way of saving. Although banks and authorities have pledged to process and further strengthen the security and information technology applications for security management, scattered losses have affected customer trust. As a result, the banking system needs to be improved, not only on facilities, but also on the legal system, management system and human resources to enhance transparency and ensure the safety of depositors.

Be careful

Even though bank deposits may be safer to save money, with savings of up to billions of VN dong, we still need a more reasonable alternative.

Finance and Banking Expert, Mr. Nguyen Tri Hieu analyzed that with large sums of money, people can invest in real estate. In fact, the channel should be cautious and prudent. Although no real estate bubble has occurred as it did in the past, the market is entering a saturation stage, which means supply is over demand. Equally for the stock market, it is advisable for people to be cautious and knowledgeable about investing. Since this channel, up 30% in 2017, was a good thing. However, it may cause a bubble of stocks, especially when foreign capital inflows may be affected by the "hurt" of the international economy.

However, generally in the market, both real estate and securities channels are providing much needed support. Vietnam Real Estate Association predicts that real estate will be hard to spike this year, up to 5%, but the real estate market will still be profitable while the real estate sector does not require investors requiring too much knowledge. With regard to the stock market, with stable macroeconomic growth, businesses are profitable, so from 2017, the stock in 2018 is likely to still have impressive growth.

Another investment channel which is very hot in recent times is digital money. The year 2017 has seen a lot of increases with many rich speculators. But in 2018, it seems that this investment channel is showing signs of decline down to the current level to more than $US 8,000 per Bitcoin. Therefore, the advice given by financial experts is not to invest in digital money, because it is not only legally unconstitutional, but also has a volatile nature, causing damage to investors.

In general, with the current economic situation, whether safe or risky, there is a need for the right decision to be made by people and investors. Therefore, people and investors should be equipped with knowledge, do research and make a thorough investigation of the mechanism and conditions, to avoid misfortune.

By Huong Diu/ Hoang Anh

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