"Invest with Just 1 Won"… KakaoPay Securities Launches 3 Types of Equity Funds

Invest in ESG and Blue-Chip Companies at Once
Invest with KakaoPay Spare Change

[Asia Economy Reporter Kiho Sung] Kakao Pay Securities launched three new funds on the 22nd: the #Healthy Fund that invests in ESG management companies, the #KoreaIndex Fund that allows investment in 200 representative Korean companies at once, and the #KoreaReverse Fund that can hedge against stock market downturns.

The #Healthy Fund Investing in Good Companies (NH-Amundi 100-Year Company Green Korea Equity Fund Ce) is a product that invests in companies with sustainable growth by considering both non-financial ESG (Environmental, Social, Governance) factors and financial factors (growth, profitability, stability). The portfolio is built mainly around companies with high ESG evaluation ratings and sectors with high future ESG growth potential. In fact, companies with high scores on the ‘KRX ESG Social Responsibility Management Index’ calculated by the Korea Exchange have shown superior performance compared to the KOSPI, as they are less likely to suffer reputational damage or unexpected adverse events. Additionally, with global trends of capital flowing into ESG in the US and Europe, this fund may be suitable for investors seeking stable long-term returns.

The #KoreaIndex Fund Investing in Representative Stocks at Once (Kyobo AXA Power Index Securities Investment Trust No.1 [Equity-Derivative Type] Ce) is suitable for beginners who want to try stock investment but find it difficult to start. It benchmarks 100% against the ‘KOSPI 200 Index’ calculated and announced by the Korea Exchange, allowing investment in stocks of 200 large-cap, actively traded Korean companies at once. Regardless of individual stock prices, investment is possible from as little as 1,000 KRW, effectively buying all stocks with a small amount. The fund prioritizes stable tracking of benchmark returns and seeks low-risk additional returns by efficiently managing the fund through a mix of index replication portfolio investment and additional return investments.

The #KoreaReverse Fund That Earns Profit When the Market Falls (NH-Amundi Reverse Index Securities Investment Trust [Equity-Derivative Type] Ce) is a product that can generate profits when the stock market declines. By investing in stocks and stock-related derivatives, it seeks -1 times the daily fluctuation rate of the KOSPI 200 futures index, so if the stock index falls by 1%, investors gain +1% returns. Conversely, losses may occur if the stock market rises, so caution is needed, but it can be a good choice depending on the investment situation. For example, investing a portion of the investment amount in this fund can reduce losses when stocks fall, serving as an effective risk management tool.

The newly added funds can be invested in from 1,000 KRW within the Kakao Pay platform. Users can select the ‘Investment’ service on Kakao Pay Home within KakaoTalk or the Kakao Pay app. By applying for ‘Auto Investment,’ which allows specifying amounts on desired dates weekly or monthly, users can develop a habit of steady small investments. The ‘Coin Collection’ feature invests leftover change after Kakao Pay payments, and the ‘Al Collection’ feature invests payment rewards, allowing investments from as little as 1 KRW. However, the #KoreaReverse Fund, which moves opposite to the market, cannot be designated for ‘Coin Collection,’ ‘Al Collection,’ or ‘Auto Investment.’

To celebrate the launch of the new funds, Kakao Pay Securities is running a coffee support promotion for ‘Auto Investment’ applicants until the 14th of next month. Regardless of the fund type, those who set up weekly or monthly auto investments will receive coffee support funds of 1.5 million KRW (10 people), 50,000 KRW (100 people), or Americano exchange coupons (1,000 people). Additionally, those who auto-invest 50,000 KRW or more weekly will be entered into a draw to receive 100,000 KRW coffee support funds (10 people).

Meanwhile, Kakao Pay Securities has established a lineup of eight funds: three stock investment funds, three EMP funds, and two bond investment funds. Considering the characteristics of the Kakao Pay platform used by 35 million people, market trends, volatility, and other factors, the company carefully selects fund products. Going forward, rather than simply listing many products, it plans to sequentially expand a carefully curated selection of funds based on analysis of user preferences and demand.

Lee Sang-won, Head of Business Strategy at Kakao Pay Securities, said, “We have strengthened our fund lineup so that beginners starting investment or investors interested in the stock market can choose according to their own situations and needs,” adding, “We hope that through carefully selected funds by Kakao Pay Securities, users can understand market trends and broaden their investment experience.”

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