FAQs

Investment performance at Passion Investment

  • I personally think that the equity investment in Vietnam is very risky. How can I trust the profit rate the company suggests?
    • Passion Investment only invests in good-performing companies that it knows very clearly. With the value investing approach, each share is a part of a company’s value. When a company develops and does business well, its stock price will reflect that. In the current macroeconomic context (GDP growth of 6-7% a year), picking companies with a profit growth of 15-20% a year is not difficult.

      I personally think that the equity investment in Vietnam is very risky. How can I trust the profit rate the company suggests?
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  • I used to know that some securities investors got the average rates of return of 100-200% a year with a single investment. Is the expected rate of return of 20% a year offered by the company too low?
    • Investments with a rate of return of 100% to 200% a year will carry a corresponding level of potential risk. Investors can achieve a very high profit but they are also exposed to a very high risk of capital loss. Our top priority is preserving capital for customers while trying to achieve the expected profit margin of 20-25% a year. The advantage of this method is a very low investment risk. PI thinks that an investment with a stable rate of return will take advantage of the power of reinvestment to increase assets for customers.

      I used to know that some securities investors got the average rates of return of 100-200% a year with a single investment. Is the expected rate of return of 20% a year offered by the company too low?
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  • Is the investment method that the company has chosen is the best? What are advantages and disadvantages of the chosen method?
    • The investment methodology that Passion Investment uses is the popular value investing methodology. In the past, many investors employed this strategy and reaped great success, including Benjamin Graham, Philip Fisher, Peter Lynch and Warren Buffett (the third wealthiest billionaire in the world). Particularly, Warren Buffett is the most successful value investor to date, with an average rate of return over 20% a year over the past 60 years. This made him the third richest man in the world with a fortune of over US$72 billion. This method may not bring as high rate of return as other methods in times of stock market boom but its profit sustainability and risk are lower than other investment methods.

      Is the investment method that the company has chosen is the best? What are advantages and disadvantages of the chosen method?
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  • Can I know how the company has invested?
    • Passion Investment will notify customers of its investment efficiency through the following sources:

      Website: Investment efficiency is periodically and publicly updated on Fridays on Passion Investment’s website (see more here).

      Weekly report, certified by the supervisory securities company at the service, covers:

      • Statement on net asset value (NAV) changes
      • Statement on investment unit changes
      • Statement on deposit/withdrawal values

      In the weekly report, Passion Investment will also estimate profit /loss in the reporting period and send it to every customer.

      Can I know how the company has invested?
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I want to pool investment. What cooperation forms does the company have?

  • What is the starting capital value?
    • For investment consulting service, the starting capital value is 2 billion VND

      For investment cooperation service, the starting capital value is 20 million VND

      What is the starting capital value?
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  • What is the most common investment cooperation form at Passion Investment?
    • Financial advisory and equity capital investment are relatively new investment forms in Vietnam. Therefore, a majority of Passion Investment customers initially prefer “guarantee of minimum profit” because of their fears and precaution. Accordingly, they are sure to get at least 6% rate of return regardless of how the investment has performed. However, after seeing the impressive investment efficiency, a lot have switched to the “profit sharing” form in order to seek the highest rate of return. Their risk appetites and financial goals drive their choices.

      What is the most common investment cooperation form at Passion Investment?
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  • I want to pool investment. What cooperation forms does the company have?
    • As for investment cooperation services, PI has two forms, namely profit sharing and guarantee of minimum profit, for you to choose. The options depend on your risk appetites and financial objectives:

      Firstly, as for guarantee of minimum profit, you will receive a minimum rate of return of 6% per annum. If the rate of return is less than 6%, the company will compensate to ensure the rate of return of 6% you will get as promised. If the rate exceeds 6%, the profit sharing will be 50-50 on excess value. Joining this form, you are totally free from any risk and always obtain a fixed rate of return of 6% plus 50% of excess value.

      Secondly, as for profit sharing, the base rate of return is still 6% and if the rate exceeds 6%, the profit sharing will be 80-20 on excess value. Or in other words, you will get 6% plus 80% on excess value. You will accept all risks from underperforming investments. The company will not compensate in case the rate of return is below 6% or negative.

      I want to pool investment. What cooperation forms does the company have?
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  • Please make a comparison between Profit sharing and Guarantee of minimum profit investment forms?
    • Currently, the two most common investment cooperation forms at Passion Investment are profit sharing and guarantee of minimum profit.

      Wherein, each of form has its own pros and cons.

       

      Guarantee of minimum profit

      Profit sharing

      Pros

      Customers are completely free from risks. You are guaranteed to receive a rate of return of 6% per annum (equal to deposit rate at banks) regardless of how the investment has performed. But, they will receive a higher rate in case the investment outperformed.

      In case the investment outperforms, customers will receive a much higher rate of return than the guarantee of minimum profit form.

      Cons

      In case the investment greatly outperforms, customers will receive a much lower rate of return than the profit sharing form.

      Customers will accept all risks from underperforming investments (the rate of return is below 6% or negative). In those cases, they will receive lower a profit rate or bear all the losses.

      Please make a comparison between Profit sharing and Guarantee of minimum profit investment forms?
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Operating Capacity of Passion Investment and Company Leadership

  • How does Passion Investment invest? Does the company tread water?
    • The investment strategy of Passion Investment is investing the value of target companies. We only invest in listed companies on the stock market and we do not use “treading water” strategy in stock investment, not invest in real estate and not invest in unlisted stocks.

      Treading above water is characterized by possibly high return but exposed to potentially high risk. Property investment may face liquidity risks because it is impossibly sold to take back cash. And, investment in unlisted shares also faces liquidity risks in case target companies change their plans.

      Passion Investment manages money for many investors. We prioritize capital preservation for customers and target at a sustainable profit margin of 20-25% a year. Therefore, we do not choose illiquid or risk-prone investment forms for customers.

      How does Passion Investment invest? Does the company tread water?
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  • How are the investment capacity and experience of Passion Investment specialists?
    • Passion Investment is a professional investment company staffed by leading specialists with extensive investment experience gained from major domestic funds. These investment professionals used to manage up to trillions of Vietnamese dong with outperforming investment results in many straight years (See specialist expertise here)

      How are the investment capacity and experience of Passion Investment specialists?
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Transaction Procedures

  • Is the business cooperation account management company truly trustworthy?
    • To ensure transparency, Passion Investment will send weekly reports on changes in business cooperation account sealed by Passion Investment and validated the third supervisory party – Vietcombank Securities Company (VCBS). Customers will keep full track of information regarding capital balance, capital used for stock trading, and deposit/withdrawal values.

      Is the business cooperation account management company truly trustworthy?
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  • What if my family has a sudden business and I want to withdraw my pool halfway?
    • The validity duration of a contract is one year. However, if you want to prematurely take out your money, we are committed to arranging the withdrawal at the earliest. You will be shared a profit in correspondence to your investment in case it is profitable at the time of withdrawal. We can do this because we invest in highly liquid listed firms only.

      However, the capital withdrawal in the short time will affect the company’s investment strategy; you will be thus subject to a fee for premature withdrawal.

      What if my family has a sudden business and I want to withdraw my pool halfway?
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  • Can I know how the company has invested?
    • Passion Investment will notify customers of its investment efficiency through the following sources:

      Website: Investment efficiency is periodically and publicly updated on Fridays on Passion Investment’s website (see more here).

      Weekly report, certified by the supervisory securities company at the service, covers:

      • Statement on net asset value (NAV) changes
      • Statement on investment unit changes
      • Statement on deposit/withdrawal values

      In the weekly report, Passion Investment will also estimate profit /loss in the reporting period and send it to every customer.

      Can I know how the company has invested?
      Rate this post

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