As Stock Market Moves Sideways
The principal of domestic bond funds increased 5,602.1 billion won for the past three months. The principal of domestic stock funds decreased approximately 250 billion won in that period.
The ongoing popularity of the former is because the stock market is moving sideways these days. KOSPI hit an all-time high of 3,266.23 points in early January this year and then dipped below 3,000 in March.
Short-term bond funds are particularly popular now. The 10 domestic bond funds that showed the largest increase in principal for the past three months include six short-term and ultra short-term bond funds.
According to industry sources, some of the money in the bond funds is from money market funds (MMFs), whose popularity has increased since the beginning of this year. The net inflow into domestic MMFs already exceeded 50 trillion won this year and the principal increased by more than 20 trillion won for the past three months.