Pick for 18th January - Lion Capital Vietnam

This pick actually late for a few days...this fund was launched on Monday 15th Jan and the plan is to buy it when it is juz launched...It's the first fund that invests in Vietnam and it comes at a good time when Vietnam just entered the ASEAN FTA...I forgot the exact news...but it's good news..haha...

On the downside there are 2 risk factors....

1. all time high on the Vietnam stock index...thanks to Anthony for the chart...Yes it's a risk because it's nv good to buy anything that is at it's peak...but if u look at Dow Jones, STI and any asian index...basically everything is at its all time high...My personal view is that a correction may be on the cards..but if ur investment window is abt 1-2 years...any correction is juz noise and serves as a good entry point for further investments....

2. Bird Flu - Well, the bird flu problem has been present in Vietnam for quite a few years already and no one will know whether it will get worse or improve...If it gets worse, Vietnam's economy will be hit...but this definitely will not be the determining factor for the Vietnamese economy...

On the upside...Vietnam is quoted as the next China...because of it's under developed nature as well as its under valued economy...it's one of the best emerging markets in the world...and with Asian growth forecasted above global growth for 2007....I think it's a good buy...

Just 4 days..and it's this fund has become the highest volume traded fund on Fundsupermart... pretty hot...haha...on a lighter note...you can think this way..."if die...I wont be the only one, lol", so juz put a little into this fund and my prediction is an average of at least 15-20% returns per annum for this fund...

Strategy: Buy and dun care for 1-2 years...May take profit in June if earnings >20%
Investment window: 1-2 years