Gold, real estate, stocks, USD: Which investment channel is the most profitable in the past 5, 10, 15 and 21 years?

According to Dragon Capital’s data, in the last 5 years, stocks have been the channel with the highest return rate up to 19.2%/year (equivalent to an increase of 140%). This means, on average, investors can earn 2.4 billion VND if they invest 1 billion VND from 2017.

While real estate has an average rate of return of 12.1%/year (equivalent to an increase of 77% in the past 5 years); bonds is 9.8% (equivalent to 60% increase over the past 5 years). The two least profitable channels are gold 6.1%/year (equivalent to an increase of 34%) and USD 0.2% (equivalent to an increase of only 1%).

In general over the past 10 years, stocks also have the highest average return at 15.8%/year (equivalent to 4.3 times); bonds with the second highest yield of 9.9%/year (equivalent to 2.6 times); real estate has a profit rate of 8.9%/year (equivalent to 2.3 times); Gold and USD have return rates of 1.7%/year and 0.9%/year respectively, equivalent to an increase of 18.4% and 9.4% in the past 10 years.

In 15 years, real estate is the most effective investment channel with an average return rate of up to 11.5%/year. This means, if investors pour 1 billion into real estate since 2007, investors can earn more than 5.1 billion dong, based on the general rate of return of the market.

The average return of the stock channel in the past 15 years is 10.8%/year (equivalent to 4.7 times), the bond channel is 9.1%/year (equivalent to 3.7 times); gold is 7.2%/year, (equivalent to 2.8 times) and USD is 2.4% (equivalent to an increase of 43%).

Further in the 21-year period, stocks have proven to be a superior return channel with a yield of up to 15.9%/year, meaning the return is more than 19 times the initial investment. Next is real estate with an average return rate of 11.9%, or 10.6 times; bonds 9.4% (equivalent to 6.6 times); gold is 9% (equivalent to 6.1 times) and USD is 2.2% (equivalent to an increase of 58%).

Profitability of investment channels in the past 5, 10, 15 and 21 years

According to Mr. Bui Minh Long, Head of Portfolio Management of DCDS Fund, Dragon Capital Vietnam, the best investment channel is the one that brings the most added value to society.

Mr. Long, precious metals such as gold and silver are a temporary stable investment channel in the short term in the face of world geopolitical fluctuations. However, in the long term, this investment channel is not effective because it does not create added value, this is often considered a risk-free channel rather than an investment.

“If you invest 10 years in gold long-term, you only get a high return in 1-2 years of the crisis, but you have wasted the remaining 8 years.”

With the savings channel, Mr. Minh said that this is a safe investment channel but has a low profitability rate due to low interest rates. Therefore, this expert believes that investors with high safety tastes instead of saving can partially switch to bond channels or bond investment funds to have higher profitability.

Assessing the real estate investment channel in Vietnam, Mr. Minh said that although it does not create added value, the population growth and urbanization process help property prices always increase in the long term. Therefore, the potential for price increase of Vietnam’s real estate market is still high.

Explaining the outstanding profitability of the stock channel, Dragon Capital’s experts said that stocks represent businesses – this is the class that creates the most added value for society.

“As we sit here still discussing major political issues, businesses out there continue to operate and look for different profitable business opportunities,” Minh shared.

Although they are attractive investment channels, according to Mr. Minh, securities and real estate are investment channels with higher risk and for professionals.

Economic life