It has been found that the net asset of bond funds in Korea hit a record high with an increasing number of investors preferring risk-free investment in order to avoid uncertainties in the global financial market.
According to the Korea Financial Investment Association, the amount of the net asset totaled 90.076 trillion won on February 19, breaking the 90 trillion won mark for the first time ever. The domestic bond fund net asset statistics have been available since 2004 and the all-time low, about one-third of the recent amount, was recorded in December 2008.
A total of 4.1 trillion won has flowed into this type of funds since the beginning of this year. This is because more and more investors are focusing on the safety of the funds with the Chinese stock market plunging and commodity prices plummeting to fuel the volatility of the international financial market.