KB Securities, Fund Investment Keywords for Second Half of the Year... 'Target Conversion Type · Installment Investment'

Domestic and Foreign Equity Funds Invest as 'Target Conversion Type', Overseas Bond Funds as 'Installment Savings'

[Asia Economy Reporter Oh Ju-yeon] KB Securities suggested on the 10th that domestic and international equity funds be invested in target conversion types in the second half of this year, and that overseas bond funds be purchased in installments through installment savings.

KB Securities recently noted that although the index has recovered significantly, it believes there is ample room for further price increases in future leading growth companies such as software, content, telecommunications industries, and secondary batteries, which have become the main industries of the real economy. KB Securities plans to focus on discovering and selling equity funds that pursue target returns centered on these stocks. In particular, through asset management companies that have consistently shown steady returns by discovering high-performing growth stocks, they plan to continuously lineup target conversion type funds.

Along with this, KB Securities viewed that U.S. high-yield bonds and emerging market government bonds have fallen excessively in price compared to their intrinsic value in a short period, and considering the active liquidity expansion policies implemented by various governments, they see great investment attractiveness. Although concerns about credit risk have increased due to the COVID-19 issue, leading to increased volatility and the risk of further price declines, they explained that from a long-term perspective, intrinsic yields will not be significantly impaired. KB Securities recommended purchasing funds managed with these bonds in installments over the next 6 months to 1 year.

They identified a total of three products suitable for these criteria: ▲ AB Global High Yield Securities Investment Trust (Bond - Fund of Funds) ▲ KB Global Real Asset Income Securities Investment Trust (Bond) (H) ▲ Shinhan BNPP H20 Global Bond Securities Investment Trust (H/UH) [Bond Mixed - Derivative Fund of Funds].

Shin Geung-ho, head of the IPS division, said, "Recently, the Korean and global stock markets have rapidly rebounded centered on growth companies leading future industries, and the financial market is stabilizing, but risks have not been completely resolved. From the perspective of asset allocation, selecting investment products is the basic principle of wise asset management, so we will continuously present investment strategies suitable for the economic situation."

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