Shinhan Asset Management Launches Four Types of Youth Income Deduction Long-Term Funds

Investing 6 Million KRW Annually for 5 Years
Maximum Tax Savings of 1.98 Million KRW

Shinhan Asset Management announced on the 23rd that it has launched four types of “Youth Income Deduction Long-term Funds” (hereinafter referred to as Youth Funds). The products are “Shinhan Early Bird Youth Income Deduction Long-term Fund,” “Shinhan Korea Long-Short Youth Income Deduction Long-term Fund,” “Shinhan K-Culture Youth Income Deduction Long-term Fund,” and “Shinhan Smart Index Youth Income Deduction Long-term Fund.” All funds can be subscribed to at each distributor’s sales outlets and online.

The Youth Funds are designed to help young people build assets. If they contribute up to 6 million KRW annually for 3 to 5 years, they can receive an income deduction benefit of 40% on their contributions. Young people aged 19 to 34 with an annual salary of 50 million KRW or less or a comprehensive income amount of 38 million KRW or less can subscribe until December 31, 2023. For youths with an annual income between 14 million and 50 million KRW (tax rate: 16.5%), contributing 6 million KRW annually for 5 years can result in a maximum tax saving effect of 1.98 million KRW. After subscription, the income deduction benefit is maintained up to an annual total salary of 80 million KRW or a comprehensive income amount of 67 million KRW.

The Early Bird Youth Fund is a product launched as a youth fund based on Shinhan Asset Management’s flagship fund operated since 2005, characterized by outstanding long-term performance that has already been verified. As of the 20th, the 3-year performance of the A1 class was 94.6%, nearly double the benchmark index (95% KOSPI Composite Index + 5% call rate). It can be subscribed to through Shinhan Bank, Mirae Asset Securities, and Daishin Securities.

The Korea Long-Short Youth Fund is suitable for investors seeking stability. It pursues absolute returns regardless of market conditions by buying undervalued assets and selling overvalued assets. It features performance defense through active short position building even in a downturn market. It is sold through Mirae Asset Securities and Industrial Bank of Korea.

The K-Culture Youth Fund invests in stocks of cultural theme companies expected to have sustainable growth, such as IT, media, webtoons, games, beauty, and e-commerce. It is regarded as a fund suitable for young people, who are the main consumers and suppliers of the Korean cultural industry, to invest based on their high understanding. It is sold through Shinhan Bank, Hana Bank, and Mirae Asset Securities.

The Smart Index Fund invests most of its equity portion linked to the KOSPI 200 index while pursuing excess returns through a separate alpha portfolio. This fund is suitable for investors who want to invest in line with the growth of the Korean stock market and can be subscribed to at Shinhan Bank.

Kim Kyung-il, Head of WM Pension Channel at Shinhan Asset Management, said, “We hope that young investors choose one of the four products according to their investment objectives to enjoy tax benefits and achieve their asset formation goals using excellent Shinhan funds. Shinhan Asset Management will expand distributors to facilitate investors’ convenience and make every effort to contribute to young people’s asset formation through continuous performance management.”

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