The stock market has fallen, bank deposits bring low interest rates, the real estate market remains frozen: investors do not know where to inject their idle money.
It proves to be quite difficult for investors to earn money at this moment. They cannot inject money in stocks any more as the market has been falling for the last three months. Prices of blue chips have decreased by 30-40% compared to March.
Le Dat Chi, Lecturer at the HCM City Economics University, who is also an investor, said that people should not inject money in stocks at this moment. He said that the market had been distorted by some ‘powerful forces’, while investors’ confidence has been lost due to a series of violations by securities companies (15 violation cases have been discovered so far this year).
Mr Chi said that investors should wait until the market bounced back and was on the right track, and for the time being, investors should turn to bank deposits as the safest investment channel.
Experts also said that when the real estate remained frozen and the gold market was risky, the best choice was to make deposits at banks.
However, the advice does not satisfy investors as the low interest rates offered by banks do not bring investors desired profit. In fact, the interest rates have been lowered by 10-20% compared to the end of July, despite the high inflation rate in the last seven months.
Some 10 commercial banks have announced they will lower the interest rates on VND deposits by 0.36%-0.6% per annum, commencing from August. If depositing VND100mil now, depositors will lose VND205,000-281,000 every month due to the decreased interest rates.
Investors have also been advised to inject money in government bonds, a simple investment channel with zero risk.
No investment channel can be seen as optimal nowadays, and if investors make investments in government bonds, buy gold or dollars, or make deposits at banks, they just aim to save their money and wait for their opportunities.
Source: VNE
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