The Silent Enemy: Inflation
You see the number in your account increasing, but are you actually getting richer? In the results section of VNIT's tool, pay attention to the small text "Real Value (After Inflation)".
- If you save at 6%/year interest, and inflation is 4%/year -> Your real assets only increase by 2%.
- If inflation suddenly rises to 7% -> You are actually "losing money" even though you still receive bank interest.
Understanding Investment Channels (Based on Presets)
The tool provides 3 common scenarios in Vietnam to help you visualize:
🛡️ Safe (Big 4)
Save at the 4 major state-owned banks. Risk is almost zero. Low interest rate (around 5-6%), usually just enough to offset inflation.
⚖️ Balanced
Invest in corporate bonds or balanced mutual funds. Average interest rate 8-9%. Low risk, suitable for medium-term accumulation.
🚀 Growth
Invest in Stocks (VN30 ETF) or Real Estate. Expected 12-15%/year. High short-term volatility risk, but king in the long run.
The Price of Being 'Too Safe'
Look at the blue "Difference" box. That is the Opportunity Cost.
If you are young (25-35 years old), keeping all your money in the bank for 20 years could make you "lose" billions of VND compared to investing in growth channels.
Advice: Allocate a portion of your idle money to Investment channels today. Even if the interest rate difference is only 3-4%, over 10 years, compound interest will create a huge gap.
Check Your Personal Inflation Rate
Frequently Asked Questions
💡Should I save or invest in stocks?
Depends on your risk tolerance and time horizon. Savings accounts are suitable for emergency funds and short-term goals (< 3 years). Investing (Stocks, ETFs) is suitable for long-term goals (> 5 years) to take advantage of higher compound interest and beat inflation.
💡How does inflation affect savings?
Inflation reduces the purchasing power of money. For example: Savings interest is 6% but inflation is 4%, then your assets actually only grow by 2%. VNIT's tool will calculate this 'Real Value' accurately for you.
💡What is opportunity cost in investing?
Opportunity cost is the profit you miss when choosing one option over another. For example: If you choose savings (interest 100 million VND) instead of investing (gain 200 million VND), your opportunity cost is 100 million VND. The 'Difference' section in VNIT's tool is exactly this number.