How About Investing in Financial Products with Holiday Sebaetdon?

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[Asia Economy Reporter Park Jihwan] As the holiday season passes its midpoint, many parents are wondering how to handle their children's New Year's money. How about opening financial products in the child's name to cultivate financial investment habits from an early age?

The most common method is to open a stock account in the child's name and help them invest. Recently, securities firms have been competing to offer related services such as 'stock gifting.'

Hana Financial Investment launched a stock gifting service through its trading application, Hana One Q Stocks, allowing users to gift stocks to family or acquaintances using only a mobile phone number. With just the phone number, one can gift domestic stocks or exchange-traded funds (ETFs) up to a limit of 1 million KRW per transaction. Shinhan Financial Investment introduced a KakaoTalk overseas stock gifting service, enabling gifting of major U.S. stock shares in fractional units such as 0.01 shares, not just whole shares, through overseas stock gift certificates.

Korea Investment & Securities also released an online financial gift certificate that allows easy exchange of stock and fund investment gift certificates online. It can be invested in various financial investment products such as stocks, funds, and issued notes. Through the KakaoTalk gifting platform, it is as easy as purchasing and gifting a coffee coupon, and recipients can select financial products to invest in with the gifted amount.

Another method is to open a fund account for children as an indirect investment method. In particular, for children's funds, minors under 18 years old can receive tax-free gifts up to 20 million KRW every 10 years. Additionally, profits generated from investments are excluded from gift tax, allowing for both long-term investment and tax-saving benefits.

The returns are also relatively high. The recent one-year returns of funds such as Mirae Asset Our Child Chindia Sector Representative Fund, NH-Amundi I Love My Child Installment Securities Fund, and Shin Young Junior Economic Doctor Securities Fund exceed 50%. Additional benefits such as providing management reports tailored to children's understanding are also offered.

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