Launch of 'Mirae Asset Balance REITs Real Estate Fund' for Simultaneous Investment in REITs and Real Estate Funds

Dividend Income Separate Taxation Benefit Within 50 Million KRW Limit for 3 Years

[Asia Economy Reporter Minwoo Lee] Mirae Asset Global Investments has launched a product that invests in REITs (Real Estate Investment Trusts) and real estate funds to simultaneously pursue dividend income and capital gains.

Mirae Asset Global Investments announced on the 23rd that it will launch the 'Mirae Asset Balance REITs Real Estate Fund.'

The Mirae Asset Balance REITs Real Estate Fund constructs its model based on past stock price trends, interest rate movements, and dividends. When a gap occurs between the appropriate asset price of the investment target and the actual trading price, it employs a volatility trading strategy that sells overvalued assets and buys undervalued assets. In particular, REITs tend to have stock price movements determined by expected dividend yields and move within a certain range, making it possible to accumulate profits through volatility trading.

The portfolio allocation ratio is based on 80%, adjustable between 65% and 95%. The main investment targets are domestic listed REITs and real estate funds. To resolve liquidity issues and secure additional profit opportunities, infrastructure funds and overseas listed REITs will also be utilized. If real estate stocks are not included, investments will be made in bond-type exchange-traded funds (ETFs) to secure income.

Additionally, according to the government's 'Plan to Revitalize Public Real Estate Indirect Investment,' if investors invest in public REITs and real estate funds for more than three years by the end of next year, they can receive a separate tax benefit on dividend income for three years up to a limit of 50 million KRW. A lower tax rate of 9%, compared to the existing 14%, will be applied, and the progressive comprehensive income tax rate applied when financial income exceeds 20 million KRW annually will be excluded.

Subscriptions to the product are available through Mirae Asset Daewoo, Korea Investment & Securities, and Hanwha Investment & Securities. The company plans to continuously expand sales channels in the future.

Myungjae Lim, Head of WM Marketing at Mirae Asset Global Investments, said, "The Mirae Asset Balance REITs Real Estate Fund is a small-scale indirect real estate investment product that pursues both income and capital gains. In particular, income based on rental revenue is relatively predictable and holding itself leads to profits, making it more attractive to long-term investors."

This content was produced with the assistance of AI translation services.