In recent years, investors have seen pronounced swings across a wide range of assets. Prices of gold, silver and cryptocurrencies have surged at times before retreating sharply.

Gold prices, for example, have at one point doubled, rising from around VND80 million ($3,080) per tael to more than VND190 million ($7,320), while silver prices have also rallied strongly. Property prices and digital assets like bitcoin have climbed to new highs.

However, the movements have not been one-directional, with investors also witnessing steep sell-offs, including overnight drops that have wiped out tens of millions of VND (VND10 million = $385) per tael in gold holdings, while bitcoin prices continue to fluctuate widely.

Vietnam’s stock market has shown similar volatility. The VN-Index briefly rose above 1,900 points in early January 2025 before profit-taking pressure and the approach of the Lunar New Year holiday pushed the benchmark below 1,800 points in the latest session on Thursday.

As previously reported by The Investor, the rally in asset prices has been partly driven by a prolonged low interest rate environment, which has encouraged capital to flow into assets such as gold, cryptocurrencies, and equities.

Speaking at The Wealth Box Talk, Nguyen Huynh Mai, portfolio manager at KIM Vietnam Fund Management, said asset prices in some cases have risen faster than underlying economic growth.

“Rapid price increases followed by sharp declines show that volatility does not necessarily reflect a genuine increase in asset value,” Mai said.

Against this backdrop, she said investors should allocate their capital across different investment channels to reduce risk.

For investors without sufficient knowledge of the stock market, Mai recommended participating in public mutual funds, where professional managers conduct in-depth research and diversify portfolios across dozens of stocks rather than concentrating on a few names.

She also cautioned against allocating all capital to a single investment channel. Mai suggested that 50-60% of funds be placed in savings as a financial buffer, 10-20% allocated for daily expenses, and the remaining 10-20% invested.

“The key benefit is building an investment mindset and discipline,” she said, adding that once investors have a stronger financial foundation, they can gradually increase their exposure to investments.

Mai noted that all asset classes carry inherent risks, stressing that investors should adopt a long-term perspective to help withstand short-term market fluctuations.