| dc.description.abstract | In the 1990s, the mutual fund industry booming all over the world. The emergence of modern products has helped advanced financial markets to mobilize savings and stock in the market active in a more efficient way. Therefore, the establishment of the link between savings and capital markets has created a solid basis for stable financial markets.
On the market, there are two main types of mutual funds, closed-end funds and funds that are open. But the level of attracted of open-ended funds is more attractive than the closed-end fund by higher liquidity with better incentives for small and medium enterprises. In the past, Mekong Capital operate in a very long time as the close-ended fund before the announced shut down and converted to open-ended funds because of the flexibility and its attractive for investors.
So, open ended funds are more attractive than closed-end funds for researchers. Currently both radio and newspaper media use term mutual funds for open-ended funds, causing misunderstanding of the term mutual funds. In the current legal framework of Vietnam, mutual funds are not recognized official activity and can only be regarded as a normal investment fund.
Unlike in other countries, mutual fund is a corporate class of investment fund with special tax treatments. So Vietnam is now doing, trying to be able to handle taxes on these modern investment products. | en_US |
