Equity funds see biggest outflow in two years despite August market gains

Equity funds see biggest outflow in two years despite August market gains

Equity funds in Việt Nam saw record withdrawals in August 2025, marking the strongest outflow in two years despite gains in the stock market.

In two years, equity funds withdrew nearly VNĐ65 trillion, or 45 per cent of foreign investors’ net selling, highlighting pressure despite market gains.

Equity funds in Việt Nam recorded their largest outflow in two years in August, according to data from FiinGroup.

Out of 74 equity funds, 47 funds, including open-ended, closed-end and ETFs, faced withdrawals worth VNĐ8.5 trillion (US$321 million). Net inflows at the remaining 27 funds, worth only VNĐ793 billion, were not enough to offset the loss.

The total net outflow reached VNĐ7.6 trillion, the highest since August 2023 and even above the record in July 2024.

The heaviest pressure came from Fubon FTSE Vietnam ETF, K Vietnam Equity and VEIL. Dragon Capital’s ETFs – DCVFMVN30 (E1VFVN30) and DCVFMVN Diamond (FUEVFVND) – also saw large outflows, mainly from Thai investors cutting holdings through depositary receipts.

In August, Thai investors sold VNĐ643.7 billion of DRs based on E1VFVN30 and VNĐ938.4 billion of DRs based on FUEVFVND, accounting for 87 per cent and 84 per cent of the funds’ outflows. Most sales targeted large-cap stocks such as banks (ACB, VCB, TCB) and retailers (MWG).

In the past two years, equity funds have seen net withdrawals of nearly VNĐ65 trillion, equal to 45 per cent of foreign investors’ total net selling on the stock market, showing rising pressure despite positive market movements.

The VN-Index jumped nearly 12 per cent in August 2025, led by banking, securities and real estate stocks.

However, bond funds moved in the opposite direction. They posted a net inflow of VNĐ759 billion in August, the third straight month of gains, though 41.7 per cent lower than in July.

Over the past 12 months, bond funds attracted nearly VNĐ6.5 trillion, mostly domestic money. Large funds such as MBAM, ABBF and DCIP led the trend, with MBAM alone reporting over VNĐ257 billion in August, the highest since its launch.

Fund managers also shifted cash holdings. In August, 21 out of 34 funds cut their cash ratios, reflecting more positive sentiment.

Big funds like VFMVSF, VLGF and DCDS reduced cash, while others such as VESAF and VOF raised cash for the second month to lock in profits.

On the stock side, MBB was the most bought stock by funds, reversing July’s selling. Demand came from PYN Elite, which raised its stake to 11.8 per cent, and several ETFs. Smaller banks such as OCB, HDB and STB also attracted buying, with STB seeing PYN Elite increase its stake to 18.8 per cent.

Meanwhile, TCB and ACB continued to be sold for the third month in a row, with TCB leading in net sales. SSI also returned to the top-sell list after two months of net buying. 

Bizhub