An All-time High
The Korea Financial Investment Association announced on May 18 that the size of the domestic money market fund reached an all-time high of 151,667.9 billion won on May 14.
The volume topped 149 trillion won in February this year before the global spread of COVID-19 and then dropped to 119 trillion won in March. However, it increased by no less than 32 trillion won or so from April 1 to May 14, led by investment corporations. Individual investors’ money market funds increased by more than one trillion won, too.
The money market fund, which allows free deposit and withdrawal, is for investment in short-term gilts in most cases. This is why it is regarded as funds ready to enter the stock market after fund redemption or stock sale.
At present, an increasing number of investors are maintaining a wait-and-see stance as the COVID-19 pandemic is showing signs of re-spreading along with U.S.-China trade disputes. In addition, multiple securities companies are mentioning the possibility of a temporary bear market after the recent rally.