Examine the asset allocation pattern amongst Vietnam investors, western economy and Chinese Economy.

An analysis of the risk and return

Vietnamese investors have traditionally followed an asset allocation pattern that is largely focused on the domestic economy. The majority of their investments go into real estate, stocks, and bonds. They also invest in foreign currencies and gold, but these have generally made up a much smaller portion of their overall portfolio. In recent years, however, more Vietnamese investors are diversifying their portfolios to include assets from different countries and economies.

Western economies such as the United States, Europe, Australia and Canada typically follow a more diverse asset allocation pattern than Vietnam investors do. These portfolios usually consist of stocks, bonds and other financial instruments such as mutual funds or ETFs along with alternative investments like commodities or hedge funds. Real estate is often included as well although it may be less prevalent than other types of investments depending on the individual’s risk tolerance level.

Chinese investors have increasingly been diversifying their portfolios to include assets from outside of China in recent years due to growing concerns over Chinese economic growth slowing down substantially since 2008-09 global financial crisis. Their investments now span across multiple asset classes including equities from both domestic and international markets, fixed income securities (government bonds), real estate (both commercial and residential) as well commodities including metals like gold or silver that provide great store of value for long term investment horizon. Some Chinese investors have also started investing in venture capital funds which provide them access to private equity deals which were once unavailable to them before due to stringent regulations around foreign direct investment within China itself.