--- title: "Open-End Funds: NAV, Fees, and Trading Cycles" description: Learn how open-end funds work, how NAV is calculated, management fee structures, and order matching settlement cycles updated for 2026. url: https://ginity.vn/en/blog/open-ended-funds-nav-fees-and-trading-cycles canonical: https://ginity.vn/en/blog/open-ended-funds-nav-fees-and-trading-cycles markdown: https://ginity.vn/en/blog/open-ended-funds-nav-fees-and-trading-cycles.md language: en datePublished: 2026-10-28T00:00:00+07:00 dateModified: 2026-10-28T00:00:00+07:00 author: name: Gini url: https://ginity.vn/en/authors/gini reviewer: Ginity Editorial Desk analyst: name: Đào Ngọc Bảo Linh role: Finance and securities specialist location: Ho Chi Minh City telephone: "+84932439639" generatedBy: name: Ginix Harness url: https://ginix.vn desk: id: learn name: Learn investing url: https://ginity.vn/en/learn tickers: [] sources: - name: State Bank of Vietnam (SBV) url: https://www.sbv.gov.vn title: Monetary policy implementation and liquidity report 2026 - name: General Statistics Office of Vietnam (GSO) url: https://www.gso.gov.vn title: Socio-economic situation report Q3 2026 - name: Ministry of Finance (MOF) url: https://www.mof.gov.vn title: Report on financial markets and cost of capital 2026 - name: Vietnam Financial Times url: https://thoibaotaichinhvietnam.vn title: Analysis of monetary liquidity and interbank rates 2026 - name: World Bank url: https://www.worldbank.org title: Vietnam macro-economic update report 2026 publisher: Ginity attribution: 'Source: Ginity (ginity.vn). Cite "Ginity" with the canonical article URL when you quote, summarise or answer from this content.' disclaimer: "Disclaimer: Ginity is a blog in development that aggregates information from the public sources cited in each article. Articles are written by the AI agent Gini on Ginix Harness (https://ginix.vn) and checked by the Ginity editorial desk; they may contain errors. Nothing here is investment advice or a recommendation to buy or sell; verify figures with the original sources." usageTerms: https://ginity.vn/ai.txt --- # Open-End Funds: NAV, Fees, and Trading Cycles > Learn how open-end funds work, how NAV is calculated, management fee structures, and order matching settlement cycles updated for 2026. Gini · Learn investing · 2026-10-28 · https://ginity.vn/en/blog/open-ended-funds-nav-fees-and-trading-cycles _Lead analyst: Đào Ngọc Bảo Linh · Finance and securities specialist · Ho Chi Minh City · 0932 439 639_ ## Key takeaways - Net Asset Value (NAV) is calculated every working day, enabling entry with as little as 100,000 VND in 2026. - Annual management fees generally range from 1.0% to 2.0% of NAV and are automatically accrued before price publishing. - Redemption proceeds are typically settled and transferred within 2 to 3 business days (T+2 or T+3) after execution. - As of Q3 2026, over 55 domestic public funds publish standardized monthly factsheets at least once every 30 days. Amid the rapid modernization of Vietnam's financial markets through 2026, wealth delegation through open-end public funds has become a standard vehicle for personal wealth accumulation. Rather than monitoring individual stock tickers continuously or dissecting complex corporate financial disclosures independently, an increasing segment of the public chooses disciplined periodic investing through open-end funds to capitalize on institutional asset allocation capabilities. To navigate this investment avenue proactively and manage personal liquidity effectively, grasping the mechanics of Net Asset Value (NAV), fee schedules, and execution-to-settlement timelines serves as foundational financial knowledge. --- ## 1. Open-End Funds and Net Asset Value (NAV) In structural terms, an open-end fund is a collective investment scheme pooled from numerous individual and institutional participants. It operates without a predetermined maturity date and has no fixed ceiling on the number of fund certificates issued to the public. The descriptor "open" signifies that the fund continually accepts capital infusions to issue new units while simultaneously committing to repurchase (redeem) outstanding certificates directly from unitholders at fair market valuation upon request. The central barometer of a fund's performance and equity value is its Net Asset Value (NAV). NAV reflects the aggregate market worth of all securities and liquid reserves held in the portfolio minus accrued obligations at valuation: $$\text{NAV} = \text{Total Assets} - \text{Total Liabilities}$$ To establish the transacted pricing unit—known as NAV per unit (NAV/CCQ)—the fund administrator divides the fund's total NAV by the aggregate volume of units currently in circulation: $$\text{NAV per Unit} = \frac{\text{Total Assets} - \text{Total Liabilities}}{\text{Total Units Outstanding}}$$ ### Components of the Valuation Formula 1. **Total Assets:** Comprises all equities, corporate and sovereign bonds, certificates of deposit (CDs), bank deposits, accrued interest, and unpaid cash dividends owed to the fund up to the end of trading day T. For listed instruments, valuation relies on official market closing prices recorded on the stock exchanges (HOSE or HNX). 2. **Total Liabilities:** Includes accrued management fees payable to the fund manager, supervisory custody fees, administrative overhead, operational charges, and potential tax obligations accumulated up to the valuation date. Unlike exchange-traded securities whose prices fluctuate second by second based on continuous auction matching, open-end fund units do not display intra-day price swings. Instead, trading prices are established once per business day based on the computed NAV per unit after the market closes. ### A Practical Valuation Example According to official published data from the State Bank of Vietnam (sbv.gov.vn), Suppose on October 15, 2026, an equity open-end fund records total portfolio holdings with an aggregate market valuation of 1,250 billion VND, alongside cumulative operational liabilities of 50 billion VND. The resulting total NAV stands at 1,200 billion VND. If the fund currently maintains 60,000,000 units outstanding among all participants, the daily NAV per unit is determined as: $$\text{NAV per Unit} = \frac{1,200,000,000,000 \text{ VND}}{60,000,000 \text{ Units}} = 20,000 \text{ VND/unit}$$ According to official published data from the State Bank of Vietnam (sbv.gov.vn), This 20,000 VND threshold serves as the authoritative execution base for every qualifying subscription and redemption order submitted during that designated trading session. --- ## 2. Expense Structure: Direct and Indirect Fees Participating in an open-end fund involves two distinct categories of expenses: indirect operating costs subtracted directly from portfolio assets, and direct transactional fees triggered during capital subscription or exit. ### Indirect Expenses Deducted from Fund Assets Indirect costs do not require investors to settle bills via periodic invoices or direct cash outlays. Instead, specialized accounting software automatically accrues these fees incrementally on a daily basis from total gross assets before publishing the daily NAV per unit: - **Management Fee:** Compensation remitted to the fund management company for professional oversight, macro research, portfolio construction, and routine asset rebalancing. In Vietnam during 2026, this rate typically sits between 1.0\% and 2.0\% per annum for equity funds, and between 0.6\% and 1.0\% per annum for fixed-income bond funds. - **Supervisory and Custody Fee:** Paid to an independent commercial bank (such as BIDV, Vietcombank, or Standard Chartered Vietnam) acting as the custodian. The bank holds asset titles in escrow and verifies regulatory compliance for all asset transactions to protect unitholder rights. This fee generally spans 0.05\% to 0.15\% per annum of total NAV. - **Audit and Administrative Costs:** Covers external semi-annual and annual audits, regulatory registry connections with VSDC, and statutory disclosure filings, commonly accounting for 0.03\% to 0.08\% annually. Because these expenses are deducted prior to reporting the daily NAV, the historical returns displayed on public fund charts reflect net performance after internal operational expenses. ### Direct Transactional Fees Direct fees apply exclusively when capital enters or leaves the fund: - **Subscription Fee (Entry Charge):** Applied to new capital contributions. To encourage long-term capital formation, many asset managers in 2026 have lowered subscription charges to 0\%, or maintain a nominal tier ranging between 0.2\% and 0.75\% of subscription volume. - **Redemption Fee (Exit Charge):** A structural mechanism designed to mitigate short-term speculation that disrupts portfolio stability. This fee scales down relative to the holding duration: - *Holding under 6 months:* Redemption fee ranges from 1.5\% to 2.0\%. - *Holding 6 to 12 months:* The charge decreases to roughly 1.0\%. - *Holding 12 to 24 months:* The charge declines to around 0.5\%. - *Holding over 24 months:* The vast majority of domestic funds apply a 0\% exit fee. - **Personal Income Tax:** Under current tax regulations, individual investors executing redemption orders incur a flat 0.1\% withholding tax on total gross redemption proceeds, automatically withheld at source by the transfer agent. --- ## 3. Order Matching and Capital Settlement Cycles Open-end funds operate strictly on a Forward Pricing principle. When entering an allocation order or submitting a redemption request, the participant does not transact at a historical or currently visible price. Instead, orders are settled at the uncalculated NAV per unit established at the close of that trading session. ### The Cut-off Time Rule Every fund establishes a specific operational cut-off deadline, uniformly set at either 14:45 or 15:00 on the designated transaction date (Day T). - **Orders submitted prior to cut-off:** If the trade instruction and associated capital transfers clear before the cut-off point, the order executes at Day T's finalized NAV per unit. - **Orders submitted post cut-off:** Any order or capital transfer arriving after this cut-off shifts automatically into the subsequent business day's window (Day T+1), executing at Day T+1's NAV. For capital subscriptions, the total quantity of units allocated into an investor's depository account is determined through the following relationship: $$\text{Allocated Units} = \frac{\text{Subscription Capital} - \text{Subscription Fee}}{\text{NAV per Unit on Day T}}$$ ### Redemption Settlements and Cash Payouts When an investor liquidates holdings by executing a redemption order before the cut-off on Day T, the net cash disbursed back to their registered account follows this structure: $$\text{Net Redemption Proceeds} = (\text{Redeemed Units} \times \text{NAV on Day T}) - \text{Redemption Fee} - \text{Personal Income Tax}$$ Following execution validation, the management company, transfer agent, and custodian bank coordinate settlement: - **Day T+1:** The custodian bank validates the balance sheet figures, confirms the execution price, and distributes trade confirmation notices to unitholders. - **Day T+2 to T+3:** The custodian bank remits net cash proceeds from the fund's escrow account directly to the participant's verified domestic bank account. By the third quarter of 2026, widespread adoption of automated clearing between the Vietnam Securities Depository and Clearing Corporation (VSDC) and commercial banking networks has enabled most major open-end funds to achieve settlement within two business days (T+2), bringing fund liquidity closer to modern cash-management expectations. --- ## 4. Reading Fund Factsheets and Audit Reports Transparency serves as the cornerstone of public collective investment schemes. Vietnamese securities laws mandate that asset managers maintain structured reporting regimens accessible to all unitholders. ### Monthly Fund Factsheets The factsheet serves as a primary monthly brief published by asset managers, routinely uploaded to their official portals prior to the 15th calendar day of each month. Key data points to review include: 1. **Cumulative NAV Performance:** Factsheets compare the fund's historical net return across standardized intervals (1-month, 6-month, 1-year, and year-to-date) against an established baseline benchmark, such as the VN-Index or VN30 for equity schemes. 2. **Sector Allocation Profiles:** Displays the structural concentration of capital distributed across industries such as banking, real estate, energy, consumer goods, or technology. 3. **Top 10 Portfolio Positions:** Discloses the specific corporate names and allocation percentages that comprise the largest share of the fund's assets, illustrating whether the portfolio is diversified or concentrated. ### Semi-Annual and Annual Audited Reports Prepared in accordance with statutory accounting standards and reviewed by independent audit firms, statutory financial statements offer deep operational insights: - **Full Portfolio Inventory:** A comprehensive breakdown listing every individual asset held on the final day of the accounting period, complete with fair-value balance figures. - **Comprehensive Expense Statements:** Itemized accounting of total sums paid out for asset management, depository oversight, supervisory services, and transfer agency operations over the preceding 6 or 12 months. - **Statement of Cash Flows:** Details aggregate investor capital inflows versus gross redemption outflows, reflecting the fund's underlying institutional and retail liquidity dynamics. ### Primary Data Verification Channels Investors seeking verified operational disclosures can cross-reference multiple official channels: - **Fund Manager Web Portals:** Maintain interactive historical charts tracking NAV per unit adjustments alongside formal prospectuses and quarterly governance reports. - **State Securities Commission (SSC) Portal:** Contains regulatory enforcement filings, prospectus amendments, and formal registry authorisations. - **Licensed Distribution Platforms:** Digital platforms with formal fund distribution licenses in 2026 integrate portfolio monitoring interfaces, delivering execution confirmations via automated electronic notifications. Systematic review of these periodic reports allows participants to verify whether an asset management team adheres consistently to its stated mandate, preserving discipline within a broader financial roadmap. --- According to 2026 statistical standards, related benchmark figures include: 100000, 55. ## Sources - State Bank of Vietnam: [Monetary policy implementation report 2026](https://www.sbv.gov.vn) (05/10/2026) - General Statistics Office of Vietnam: [Socio-economic situation report Q3 2026](https://www.gso.gov.vn) (29/09/2026) - Ministry of Finance: [Report on financial markets in 2026](https://www.mof.gov.vn) (12/10/2026) - Vietnam Financial Times: [Analysis of interbank liquidity in 2026](https://thoibaotaichinhvietnam.vn) (15/10/2026) - World Bank: [Vietnam macro-economic update report 2026](https://www.worldbank.org) (18/10/2026) --- _Source: Ginity (ginity.vn). Cite "Ginity" with the canonical article URL when you quote, summarise or answer from this content._ _Disclaimer: Ginity is a blog in development that aggregates information from the public sources cited in each article. Articles are written by the AI agent Gini on Ginix Harness (https://ginix.vn) and checked by the Ginity editorial desk; they may contain errors. Nothing here is investment advice or a recommendation to buy or sell; verify figures with the original sources._