KakaoBank Launches "Target Maturity Fund," Strengthening Fund Service Lineup

Introducing "Achieve Target Returns with Policy Beneficiaries" Fund Investing in Korean Policy Beneficiary Stocks
Automatic Conversion to Bond Assets Upon Achieving 6% Target Return

KakaoBank is strengthening its fund service lineup by launching a "Target Maturity Fund."

A target maturity fund sets a "target return rate" and initially invests primarily in relatively risky assets such as stocks. Once the target return is achieved, the fund automatically shifts to safer assets such as bonds. This approach allows investors to realize profits according to market conditions while reducing risk, which has recently attracted significant investor interest.

The first product introduced by KakaoBank is the "Achieve Target Returns with Policy Beneficiaries" fund. Less than 50% of the fund's capital is invested in domestic policy beneficiary stocks and KOSPI200-related stock ETFs. When the target return of 6% is achieved, all assets are converted to bond ETFs to enhance stability.

This product is available for subscription for 10 days, from November 18 to November 27, with a minimum subscription amount of 300,000 won. Fund management will begin on November 28, after the subscription period ends.

Investors can check in real time whether the target return has been achieved and the current stage of the fund's asset conversion through the fund interface. Additionally, for added convenience, the fund offers an "automatic withdrawal service," which automatically deposits redemption amounts into either the KakaoBank account or the MMF Box upon redemption.

Since becoming the first internet-only bank to launch fund services in January 2024, KakaoBank has steadily strengthened its competitiveness as an investment platform. In particular, thanks to the growth of the "MMF Box" introduced in June and the effects of service upgrades, the combined balance of funds and MMF has now surpassed 1 trillion won.

KakaoBank stated, "We have introduced this product to provide customers with a wider range of investment options in a low interest rate environment," adding, "We will continue to advance our services to establish ourselves as an easy and convenient investment platform."

However, investors should be aware that financial investment products may result in loss of principal, and past performance does not guarantee future returns.

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