Illustrative image (Source: Reuters)Hanoi (VNA) - People are investingtheir money in five main channels of stocks, gold, foreign currencies, propertyassets and savings but which of these offered the highest returns in 2016?
Stocks: 14.8 percent
Stocks, which weredeemed risky and volatile assets, paid the highest returns last year. Thebenchmark VN-Index hit the eight-year peak at 692.17 points on September 29.Investors could earn a 34.9 percent profit when investing in the VN-Index andnearly 26 percent rate of return with investments in VN-30 during the peakperiod.
The stock market entered a downward correction from October but the VN-Indexstill ended the year up 14.8 percent over December 31, 2015, a good performancecompared to an 8.7 percent growth in 2015. However, actual earnings depended onthe portfolios of investors.
Gold: 10.6 percent
Domestic gold pricesjumped to a four-year high in July at 39.8 million VND (1,786 USD) per tael,paying the gold investors a 17 percent rate of returns at this time. Investorscould buy a tael of gold for 33.16 million VND on April 6 and sell it at 38.8million VND on July 6.
Gold prices slowed down its pace from early October and kept abreast with worldgold prices. In the last months of 2016, domestic gold prices still increaseddespite a steep fall in the global market, partly due to the unfounded rumoursof demonetisation.
On December 31, 2016, SJC gold was quoted at 36.18 million VND per tael and36.28 million VND per tael for buying and selling, respectively, withequivalent rises of 10.9 percent and 10.6 percent, respectively.
Savings: 6.5 percent
This safe-haveinvestment channel was offering around 6.5 percent to 6.9 percent per year.Ending September, the average deposit interest rate increased by 0.4 percent bythe end of 2015.
However, short-term deposits of less than six months were subject to theceiling interest rate of 5.5 percent.
Popular interest rates at most commercial banks were between 6.5 percent and6.9 percent per year. Bac A Bank, PVComBank offered a higher rate of 7.4percent to 7.5 percent per year. With the annual inflation rate of 4.74percent, depositors still received earnings from savings.
US dollar: 2.4 percent
The USD/VNĐ exchangerate started to be flexibly adjusted daily since early 2016 with thefluctuation band of /-3 percent. The greenback was stable for the first tenmonths of 2016 and began to strengthen following the US presidential election.
The US dollar was quotedat between 22,720 VND and 22,790 VND per dollar, up 1.2 percent and 1.1 percentover the previous year, respectively. In the black market, the dollar hit23,370 VND per dollar in the last days of the year but calmed down soon after.
The dollar gained 2.38 percent in the black market last year, a modest returnrate compared to a 5 percent gain seen in 2015.
Property
Stocks: 14.8 percent
Stocks, which weredeemed risky and volatile assets, paid the highest returns last year. Thebenchmark VN-Index hit the eight-year peak at 692.17 points on September 29.Investors could earn a 34.9 percent profit when investing in the VN-Index andnearly 26 percent rate of return with investments in VN-30 during the peakperiod.
The stock market entered a downward correction from October but the VN-Indexstill ended the year up 14.8 percent over December 31, 2015, a good performancecompared to an 8.7 percent growth in 2015. However, actual earnings depended onthe portfolios of investors.
Gold: 10.6 percent
Domestic gold pricesjumped to a four-year high in July at 39.8 million VND (1,786 USD) per tael,paying the gold investors a 17 percent rate of returns at this time. Investorscould buy a tael of gold for 33.16 million VND on April 6 and sell it at 38.8million VND on July 6.
Gold prices slowed down its pace from early October and kept abreast with worldgold prices. In the last months of 2016, domestic gold prices still increaseddespite a steep fall in the global market, partly due to the unfounded rumoursof demonetisation.
On December 31, 2016, SJC gold was quoted at 36.18 million VND per tael and36.28 million VND per tael for buying and selling, respectively, withequivalent rises of 10.9 percent and 10.6 percent, respectively.
Savings: 6.5 percent
This safe-haveinvestment channel was offering around 6.5 percent to 6.9 percent per year.Ending September, the average deposit interest rate increased by 0.4 percent bythe end of 2015.
However, short-term deposits of less than six months were subject to theceiling interest rate of 5.5 percent.
Popular interest rates at most commercial banks were between 6.5 percent and6.9 percent per year. Bac A Bank, PVComBank offered a higher rate of 7.4percent to 7.5 percent per year. With the annual inflation rate of 4.74percent, depositors still received earnings from savings.
US dollar: 2.4 percent
The USD/VNĐ exchangerate started to be flexibly adjusted daily since early 2016 with thefluctuation band of /-3 percent. The greenback was stable for the first tenmonths of 2016 and began to strengthen following the US presidential election.
The US dollar was quotedat between 22,720 VND and 22,790 VND per dollar, up 1.2 percent and 1.1 percentover the previous year, respectively. In the black market, the dollar hit23,370 VND per dollar in the last days of the year but calmed down soon after.
The dollar gained 2.38 percent in the black market last year, a modest returnrate compared to a 5 percent gain seen in 2015.
Property
The 30 trillion VNDcredit package to support low-income groups to buy social housing stoppeddisbursement on December 31, 2016. Circular No 06/2016/TT-NHNN eased somesafety ratios for banks to channel capital in the real estate sector. However,Circular No 19/2016/TT-BXD tightened re-sale procedures which affectedshort-term investors.
Prices of real estate projects differed depending on locations and house types.According to CBRE, the townhouses and villas project in District 2 in HCM Citycould reward investors a profit of 10 percent in the third quarter.-VNA
Prices of real estate projects differed depending on locations and house types.According to CBRE, the townhouses and villas project in District 2 in HCM Citycould reward investors a profit of 10 percent in the third quarter.-VNA
VNA
