"Those Who Hesitated at 3,000 Still Haven't Bought" 7 Trillion-Won Asset Manager Says "Opportunities Remain" [Investment Strategies of the Wealthy] ⑦

Interview with Jung Ahran, Head of KB Securities Daechi Financial Center
Plenty of Opportunities Remain in the Market; Invest in Companies with Proven Performance
Defend Against Volatility by Mixing Growth Stocks and Pension-Type Products
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Jung A-ran, Head of KB Securities Daechi Financial Wealth Management Center, is posing in front of the lobby of Daechi Financial Center after an interview with The Asia Business Daily. Photo by Dongjoo Yoon

"From last year through this year, as the domestic stock market has been rising, the most frequent question I have received from clients is, 'Is it okay to buy stocks now?' Some people have only asked but have not actually made purchases yet. However, I want to emphasize that there are still opportunities left in our stock market."

"The best time to invest is when you think it is too late"

Jung Aran, Head of KB Securities Daechi Financial Center, said in an interview with The Asia Business Daily on May 7 that questions from clients about the right entry point into the stock market have continued throughout the year as the KOSPI has surged. Jung leads the second-largest Wealth Management (WM) Center at KB Securities, with client assets under management at the center exceeding 7 trillion won.

Jung explained, "Ever since the KOSPI was hovering around 3,000 points, many clients have asked whether it is too late to enter the market given the sharp rise in stock prices. Now, even as the KOSPI is approaching 8,000 just a year later, I'm still getting the same questions." She added, "Many clients have missed out on opportunities to make money because they hesitated to invest," expressing her regret.

She stressed, "As much as the stock price has risen, volatility could increase going forward, but there are still many good companies in our stock market that can generate attractive returns." She advised, "It is important to diversify your asset portfolio to consistently generate returns while minimizing volatility."

She explained, "Rather than a simple aggressive investment strategy that only includes stocks, it is better to maintain growth-oriented stocks but also build a balanced portfolio by including stable assets, such as dividend income funds, Individual Savings Accounts (ISA), or Individual Retirement Pensions (IRP) and other pension-type products."

Among stocks, she recommended buying shares in industries related to artificial intelligence (AI). Jung said, "Semiconductors, power infrastructure, and robotics related to the AI supercycle remain core investment targets. Defense, aerospace, K-content, entertainment are also attractive. There is also continued interest in industries undergoing revaluation, such as financials, holding companies, and securities firms, which are benefiting from the recent trend of corporate value reassessment."

She predicted that, although the domestic stock market has already risen significantly, there is still substantial room for further growth. Jung commented, "Global liquidity and the AI-driven industrial growth trend remain positive factors. In particular, the strong performance of major U.S. big tech firms and their expanding investments in AI are boosting market liquidity." However, she added, "This is a market where selection and concentration are important, and that approach will continue. Ultimately, companies with proven earnings and a balanced asset allocation strategy will determine investment performance."

"Individual investors can hedge volatility through indirect investment"

As advice for individual investors, she said that while direct investment is fine, it is also wise to use indirect investment for long-term and steady returns. Jung noted, "Clients who trade stocks directly often feel the urge to sell as soon as their holdings rise a little, leading to frequent switching between stocks, which often results in lower returns. Due to frequent trading, returns are often halved, and it's unfortunate to see clients underperform the market even during a strong bull phase."

She went on to emphasize, "Samsung Electronics and SK hynix have both more than doubled in price over the past year, but not many clients who bought these companies at lower prices actually waited until they achieved more than 100% returns."

However, she pointed out that indirect products like funds tend to outperform direct investments in terms of returns, as they are not as easy to trade. She said, "Even though this year is not over yet, several of the public offering funds we recommended have already surpassed 100% returns. Once you subscribe to a fund, it is not easy to trade, so it naturally leads to long-term investment and helps boost returns during a bull market." She added, "Indirect investments also range from aggressive equity-type funds to more stable options like pensions, so you need to build a well-structured portfolio. Since long-term investment is only possible with proper asset allocation, it is crucial to develop a solid strategy."

Jung pledged, "I feel the greatest sense of fulfillment when my clients' assets grow alongside mine and when we can discuss important financial decisions together. I will continue to help clients grow their assets steadily over the long term by providing balanced asset allocation and long-term investment solutions."

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