The net assets of investment funds in Korea grew by more than 10 trillion won in November from the previous month. Market experts say that money flowed from the slumping stock market into money market funds (MMFs), a short-term financial product.
The net assets of Korean funds totaled 663 trillion won as of the end of November, an increase of 10.7 trillion won (1.6 percent) from a month ago, according to a fund market trend analysis released by the Financial Investment Association on Dec. 11.
By fund type, MMFs had 121.8 trillion won, a jump of 5.2 trillion won (4.4 percent) from the previous month. Equity funds suffered a capital outflow, but their net assets rose by 2 trillion won (2.6 percent) to 80.2 trillion won due to an increase in valuation. Among them, Korean equity funds climbed by 1.7 trillion won (3.0 percent) to 59.2 trillion won, while overseas equity funds swelled by 300 billion won (1.3 percent) to 21 trillion won.
Bond funds saw their net assets dwindle by 900 billion won (0.8 percent) from the previous month due to a weak preference for safe assets and an outflow of funds. As of the end of November, their net assets amounted to 122.3 trillion won. Korean bond funds fell by 800 billion won (0.7 percent) to 112.5 trillion won while overseas bond funds decreased by 100 billion won (1.3 percent) to 9.7 trillion won.
The growth of real estate funds continued last month, with their net assets inflated by 2.3 trillion won (2.4 percent) to reach 98.9 trillion won.
Meanwhile, the balance of the entire funds amounted to 647 trillion won in November, up 9.6 trillion won (1.5 percent) from one month ago.