The Performance of Open-Ended Funds in Vietnam

Hue Nguyen Thi Minh

School of Banking and Finance, National Economics University, Vietnam.

Huyen Do Phuong *

International School, Vietnam National University, Hanoi, Vietnam.

Ha Bui Thu

International Bachelor Program, National Economics University, Vietnam.

Tra My Nguyen

CMC University, Hanoi, Vietnam.

*Author to whom correspondence should be addressed.


In this paper, Jensen's Alpha is used to measure the performance of 12 open-ended funds operating in Vietnam during the period from 2013 to 2021. The model found out αi and βi. After risk is taken into account, the alpha shows whether or not the portfolio performance outperforms the market. Jensen's Alpha is interpreted in terms of the sign of alpha as well as the statistical significance of the result. Having a positive αi with statistically significant indicates higher performance compared to the market, whilst having a negative αi with statistically significant indicates lower performance. If the value of αi is statistically insignificant, the portfolio has performed similarly to the market. Pooled model regression of panel data analysis is applied to compare such funds’ performance to the VN30index and then use time-series analysis to calculate for an individual fund. The results show that, on average, these 12 open-ended funds are unable to outperform the VN30 index, but only one fund operates better than the VN30 index.

Keywords: Jensen’s alpha, open-ended funds, VN30index

How to Cite

Minh , H. N. T., Phuong, H. D., Thu, H. B., & Nguyen, T. M. (2023). The Performance of Open-Ended Funds in Vietnam. Journal of Economics, Management and Trade, 29(10), 27–39.


Download data is not yet available.


Tan O. Mutual fund performance: Evidence from south Africa. Emerging Markets Journal. 2015;5(2).


Rao D. Investment styles and performance of equity mutual funds in India. SSRN Electronic Journal; 2006.


Ban J. Effects of sales expenses and management expenses on mutual fund performance and flows. Asia-Pacific Journal of Financial Studies. 2015;44(1): 129-173. Available:

Jensen M. The performance of Mutual Funds in the period 1945-1964. Journal of Finance. 1968;23(2):389-416.


Bogle John C. Investing in the 1990s: Remembrance of things past and things yet to come. Journal of Portfolio Management. 1991;17(3):5-14.

Duong HT. The alpha performance and flow of open-ended fund in Viet Nam. HCMC: International University. [Accessed: 1 January 2022]; 2016.

Sharpe W. Capital Asset Prices: A Theory of Market Equilibrium under Conditions of Risk. The Journal of Finance. 1964;19(3): 425-442.

Lintner J. Security Prices, Risk, and Maximal Gains from Diversification. The Journal of Finance. 1965;20(4):587.


Treynor J. Market Value, Time, and Risk. SSRN Electronic Journal; 1961. Available:

Fama EF. Risk, return and equilibrium: some clarifying comments. The Journal of Finance. 1968;23(1):29-40.


Markowitz HM. Portfolio selection: Efficient diversification of investments, Journal of Finance. 1960;7:77-91. [Accessed: 8 January 2022].

Treynor J, Mazuy K. Can mutual funds outguess the market?. Harvard Business Review. 1966;44(4):131-136.

Kon SJ. The market-timing performance of mutual fund managers. Journal of Business. 1983;56 (3):323-347. [Accessed: 16 April 2022].

Grinblatt M, Titman S, Wermers R. Momentum investment strategies, portfolio performance, and herding: A study of mutual fund behavior. The American economic review. 1989;85(5):1088-1105. [Accessed: 16 April 2022].

Ippolito RA. Efficiency with costly information: A study of mutual fund performance, 1965–1984. The Quarterly Journal of Economics. 1989;104(1):1-23. Available:

Lehman BN, Modest DM. Mutual fund performance evaluation: A comparison of benchmarks and benchmark comparisons. Journal of Finance. 1987;42(2):233–266.

Plantinga A, Groot S. Risk-adjusted performance measures and implied risk attitudes. Groningen: University of Groningen; 2001. [Accessed: 16 April 2022].

Grossman SJ, Stiglitz JE. On the impossibility of informationally efficient markets. The American Economic Review. 1980;70(3):393-408. Available:

Cumby R, Glen J. Evaluating the performance of international mutual funds. Journal of Finance. 1990;45:497–521. Available:

Blake D, Timmermann A. Mutual fund performance: evidence from the UK. Review of Finance. 1998;2(1):57-77.

Quigley G, Sinquefield R. Performance of UK equity unit trusts. Journal of Asset Management. 2000;1(1):72–92.


Matallín‐Sáez JC. Seasonality, market timing and performance amongst benchmarks and mutual fund evaluation. Journal of Business Finance & Accounting. 2006;33(9‐10):1484-1507.

Cuthbertson K, Nitzsche D, O'Sullivan N. UK mutual fund performance: Skill or luck?. Journal of Empirical Finance. 2008;15(4):613-634.

Reddy K, Mirza N, Naqvi B, Fu M. Comparative risk adjusted performance of Islamic, socially responsible and conventional funds: Evidence from United Kingdom. Economic Modelling. 2017;66: 233-243.

Dragon Capital. “VFMVN30 ETF - Fund Performance. Dragon Capital Vietfund Management; 2022.


Suppa-Aim T. Mutual fund performance in emerging markets: the case of Thailand. Ph. D Thesis: University of Birmingham; 2010. [Accessed: 16 April 2022].

Fama EF. Efficient capital markets: A review of theory and empirical work. The journal of Finance. 1970;25(2):383-417. Available:

Baltagi B. Econometric analysis of panel data, (3). New York: Johan Wiley and Sons; 2005. [Accessed: 8 January 2022].

Hsiao C. Analysis of panel data. Cambridge: Cambridge University Press. [Accessed: 8 January 2022]; 2003.

Ferson W, Schadt R. Measuring fund strategy and performance in changing economic conditions. Journal of Finance. 1996;51:425-462.

Ferson W, Warther VA. Evaluating fund performance in a dynamic market. Financial Analysts Journal. 1996;52(6):20-28. Available:

Elsiefy EAEL. Portfolio performance evaluation and selection: Theory and evidence from the Egyptian emerging capital market. PhD, University of Birmingham; 2001. [Accessed: 16 April 2022].

Fama EF. Components of investment performance. The Journal of Finance. 1972;27(3):551-567.


Fama EF, Fisher L, Jensen M, Roll R. The adjustment of stock prices to new information. International Economic Review. 1969;10(1). Available:

Fama E. Efficient capital markets: A review of theory and empirical work. The Journal of Finance. 1970;25(2):383- 417. Available:

Fauziah Md T , Mansor I. Malaysian unit trust aggregate performance. Managerial Finance. 2007;33(2):102-121.

Friend I, Brown FE, Herman ES, Vickers D. A study of mutual funds. Washington DC: US Government Printing Office; 1962. [Accessed: 14 April 2022].

Gujarati DN, Porter DC. Basic econometrics (ed.). Singapore: McGrew Hill Book Co. [Accessed: 16 April 2022]; 2003.

Henriksson RD, Merton RC. On market timing and investment performance. II. Statistical procedures for evaluating forecasting skills. Journal of Business. 1981;54(4):513-533. [Accessed: 16 April 2022].

Soo-Wah L. Malaysian unit trust funds’ performance during up and down market conditions. Managerial Finance. 2007; 33(2):154-166.

Yarovaya L, Mirza N, Rizvi SKA, Saba I, Naqvi B. The resilience of Islamic equity funds during COVID-19: Evidence from risk adjusted performance, investment styles and volatility timing. International Review of Economics & Finance. 2020;77:276-295. Available: