Volatile Stock Market, Retail Investors Returning Through Funds

Net Inflow of 922.2 Billion KRW into Equity Funds Over Three Months
Increased Fund Investment Amid Global Tightening Concerns and Uncertainty over China's Regulations

[Asia Economy Reporter Minji Lee] Domestic investors who flocked to individual stocks last year are returning to equity funds.

According to financial information company FnGuide on the 30th, domestic equity funds have seen a net inflow of 922.2 billion KRW over the past three months as of the previous day.

By type, 434.1 billion KRW flowed into active equity funds overall, and 488.1 billion KRW into index equity funds overall. As concerns over tightening policies in major investment countries such as the US and China grew and the domestic index's upward trend weakened, individual investors are believed to have turned to funds to defend their returns. During this period, the KOSPI fell by 7.2%, and the KOSDAQ index dropped by 3%.

In the past month, amid mentions of US tapering timing, Chinese government regulatory policies, and the debt default crisis of Chinese real estate developer Evergrande (恒大) Group, inflows into active funds were prominent. Among these, active thematic funds (24.2 billion KRW) and general funds (7.7 billion KRW) continued to attract capital.

Looking at individual funds, the active fund KTB VIP Star Selection raised 33.5 billion KRW over one month, attracting the most capital among domestic equity funds. This fund holds undervalued large-cap stocks and small- and mid-cap stocks with individual positive factors. It includes stocks of secondary battery-related companies such as Hansol Chemical (7.8%), L&C Bio (7.2%), Meritz Financial Group (7.1%), SKC (6.2%), SoluM (5%), and SK Materials (4.9%). Following this, the Timefolio Market Leader Fund raised 26 billion KRW, and funds such as Hyundai M Multi-Hedge KOSDAQ Venture Fund (8.2 billion KRW), Asset One Public Offering KOSDAQ Venture Fund (6.5 billion KRW), Asset Plus Korea Rich Together (5.5 billion KRW), Kiwoom Next Generation Mobility (5.5 billion KRW), Hyundai New Hyundai Group Plus (5.4 billion KRW), and NH-Amundi 100-Year Enterprise Green Korea (5.3 billion KRW) also saw increased capital.

Researcher Kim Hoo-jung of Yuanta Securities explained, "Last year, direct investments in domestic and overseas stocks increased and the stock market showed strength, leading to a decrease in assets under management due to profit-taking. From the second half of this year, capital inflows are increasing mainly into thematic funds and ESG (Environmental, Social, and Governance) sectors."

Over the past month, the products that best defended actual returns were mostly exchange-traded funds (ETFs). The Mirae Asset TIGER 200 Energy Chemical Leverage ETF posted the highest return at 19.49%. This is analyzed to be influenced by improved investor sentiment toward refining and chemical-related stocks due to rising oil prices. It was followed by Mirae Asset TIGER Secondary Battery Theme ETF (16.6%), Samsung KODEX K-Renewable Energy Active ETF (13.4%), and Samsung KODEX Energy Chemical ETF (10.67%). Among general active funds, Midas Miso Small and Mid-Cap Fund (6.8%), Mirae Asset Korea Growth Fund (6.1%), Midas New Growth Enterprise Focus Fund (5.7%), and Truston ESG Level Up Fund (5.6%) showed favorable returns.

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