Net Inflow into Korean Equity Public Funds for Two Consecutive Months for the First Time Since 2019

Active Funds Also Show Capital Inflows

[Asia Economy Reporter Minwoo Lee] Domestic equity public offering funds, including exchange-traded funds (ETFs), have seen net inflows for two consecutive months.

According to the Korea Financial Investment Association on the 5th, domestic equity public offering funds (including ETFs) recorded a net inflow of 1.627 trillion KRW last month. This marked two consecutive months of net inflows since 260.2 billion KRW in July. It is the first time in about two years since November-December 2019 that domestic equity public offering funds have experienced net inflows for two consecutive months.

However, the scale itself was not large. The total amount inflowed over two months was 1.8872 trillion KRW, similar to the 1.8609 trillion KRW net inflow recorded in May alone.

Excluding ETFs, net inflows were observed for two consecutive months for the first time since March-April last year. A total of 130.5 billion KRW flowed in, with 20.6 billion KRW in July and 109.7 billion KRW in August.

It is interpreted that as the KOSPI plunged, bottom-fishing funds poured into related funds. The KOSPI, which hovered around the 3,200 level last month, dropped to the 3,000 range due to the Federal Reserve's tapering (asset purchase reduction) becoming more visible, prompting investors to aim for an index rebound.

In fact, according to financial information provider FnGuide, as of the 1st, domestic equity index funds tracking indices recorded a net inflow of 647.9 billion KRW (including reinvested amounts) over the month. Of this, 443.3 billion KRW flowed into funds related to the KOSPI 200 index.

Meanwhile, domestic equity active funds also saw a net inflow of 291.9 billion KRW. Among active funds that seek excess returns at the discretion of fund managers, funds focusing on themes such as sustained upward trends or long-term growth, similar to the U.S. stock market, have steadily attracted capital.

According to FnGuide, among domestic equity public offering funds (excluding ETFs), the fund with the largest increase in assets under management this year was the 'NH-Amundi 100-Year Enterprise Green Korea Fund' (150.1 billion KRW). This product is an ESG (Environmental, Social, and Governance) theme fund that invests considering the sustainable growth potential of companies. Following this were the 'Mirae Asset Core Tech Fund' (143.9 billion KRW), which invests in domestic information technology (IT) companies, and the 'Kiwoom Next Generation Mobility Fund' (140.7 billion KRW), which invests in future mobility-related companies.

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