CIS Program

CSI is a systemic saving investment program which allows Investors to regularly save a fixed amount every month due to periodically subcribing the Fund Units. In many countries, CSI has proved to be beneficial to open-ended fund investors due to the value of averaging investments. Investing in CSI enables enterprises create additional welfare programs for their employees or individuals regularly save to have certain target assets.

The following example illustrates benefits of a CSI to Investors based on assumed figures (to be simple, it is assumed that there are no Subscription and Redemption Fees). Assuming that Mr. ABC wants to invest VND1,000,000 (one million dong). With periodically investing a fixed amount, the average cost of each Fund Unit held by Mr. ABC is approximately VND11,961 (eleven thousand nine hundred and sixty one dong) compared to the NAV per Fund Unit subscribed in April of VND 14,000 (fourteen thousand dong). The following table shows that the average cost of a unit that Mr. ABC subscribes for is lower than the average price of a Fund Unit.

An example illustrating a CSI in a Fund with assumed NAV:

Average subscription price/month = (10,500 + 16,000 + 9,500 + 14,000)/4 = 12,500.00

Average investment cost of each Fund Unit = 4,000,000/334.41 = 11,961.36

The above example shows the benefits of a CSI with a fixed amount periodically invested. The number of subscribed Fund Units is higher when the subscription price is low and it is subscrided lesser when the subscription price is high. Therefore, the Investors can automatically enjoy benefits without tracking daily NAV.

The key to get those benefits is to subscribe a higher number of Fund Units with a low subscription price that reduces the average investment cost. In Mr. ABC's case, the average investment cost of each Fund Unit prior to the periodic investment time in March is VND13,250 (thirteen thousand two hundred and fifty dong) while the price of each Fund Unit at the investment time is VND9,500 (nine thousand and five hundred dong) (it means Mr. ABC's investment in March reduces the average investment cost of each Fund Unit to VND11,407 (eleven thousand four hundred and seven dong). With this investment, Mr. ABC will get a profit over the total investment capital at the end of April, after recovery of the NAV/FC.

However, the Investors should note that there will be a fluctuation in the NAV/FC. Of note, before joining any CSI, we cannot guarentee the Investors will get profit or will not suffer a loss.

COMPOUND INTEREST: The sooner the cumulative value is accrued, the higher the interest accrued; therfore the Investors will receive accrued interest.

AVERAGE COST: CSI program is the ideal investment to avoid market volatility. Investors can buy more fund certificates when the price is low and buy less fund certificates when the price is high, hence they do not need to track the prive of fund certificate on a weekly basisc.

HIGH FLEXIBILITY: Investors can terminate CSI program or increase/ decrease amount of investment periodically at any time.

REASONABLE INVESTMENT: It is easier for investors to place one million dong per month on CSI program than invest in other assets that require more capital.

CONVENIENT TRADING: Investors need to fill out the CSI Agreement at the first registration and use the regular order at banks to execute the order with the fixed amount on a regular basis.

GOOD DISCIPLINE: Discipline is the key factor to invest successfully. When taking part in CSI program, investors are responsible for saving a regular and frequent amount of money.