Bond Fund Inflow Hits All-time High in 2021
The Bank of Korea announced on Jan. 13 that last year’s net inflow of securities investment funds is US$38.71 billion whereas the amount was US$3.41 billion in 2020. The 2021 figure is second only to the 2009 figure, US$42.15 billion.
Specifically, bond fund inflow increased from US$21.71 billion to an all-time high of US$56.15 billion while stock funds showed a net outflow of US$17.44 billion to exceed a net outflow of US$17 billion for the second consecutive year.
In November and December last year, the net inflow of securities investment funds was US$5.14 billion and US$8.54 billion, respectively. In December, stock fund inflow was US$3.69 billion and bond fund inflow was US$2.62 billion.
“When it comes to stock funds, expectations for semiconductor companies and so on are still more dominant than concerns over tightening,” the Bank of Korea said, adding, “As for bond funds, an increase in inflow is being led by foreign central banks and sovereign wealth funds.”