Foreign equity-type funds are sweeping the market funds ahead of the scheduled deadline for tax exemption at the end of this year.


According to KG Zeroin, a fund evaluator on May 5, the number of funds invested in overseas equity-type funds by the first day after the beginning of the year was 2.756 trillion won.


This is in contrast to the 6,155.9 billion won out of domestic equity-type funds during the same period.


In particular, it is estimated that 1.336 trillion won, which is about half of net inflows of foreign equity funds this year, came in last month.


The net inflows of foreign equity-type funds rose to 619 billion won in September and 722 billion won in October.


This is finally the result of investors seeking to participate in tax exemption benefits. ◇ Capital flow trend of domestic and overseas equity funds (Unit: KRW 100 million)


Large type September October November 2017

Domestic stock type -5,213 -15,252 7,676 -61,659

Overseas stock type 6,159 7,022 13,066 27,568



※ Below 2017.12.1, KG provided by Zeroin



As a result, the launch of new products and promotional events for overseas equity funds are continuing.


Hana Financial Investment Co., Ltd. has launched 'One UBS Global Fourth Industry First Place Plus Fund' and 'One UBS China First Place Plus Fund', which are covered by tax exemption the day before. On the same day, Hanwha Asset Management also newly launched 'Hanwha ASEAN Legend Fund'.


The fund supermarket announced on the previous day that 20 of the customers who filled 30 million won of tax exemption limit will be given an event to give musical 'Titanic' ticket by 29th.


Samsung Securities also has various events for non-taxable overseas equity fund customers from last month to the end of the year.


By type, Asian emerging market equity funds outperformed foreign equity funds this year with an average return of 35.52% since the beginning of the year.


Followed by China (33.23 percent), Vietnam (29.81 percent), Asia Pacific (29.35 percent) and India (28.25 percent).


"If you change over from next year, you will not be able to receive tax exemption benefits," said KBS Securities Researcher Ohon Soo. "It is time to take an investment watch in the mid to long-term for tax benefit."


He added, "In the mid- to long-term, Asia is a market where asset prices are likely to rise as the weight of the middle class grows." Taking as much of Asia's emerging economies as possible rates will be a driving force for excess performance.".



◇ Top five overseas equity fund type returns (Unit: 100 million won,%)


type Net assets Yield

Overseas stock type 237,875 24.80

- Emerging Asia stocks 4,931 35.52

- Chinese stocks 90,609 33.23

- Vietnam Stock 7,047 29.81

- Asia Pacific shares (excluding Japan) 12,892 29.35

- Indian stock 8,845 28.25




WRITTEN BY
Smart Money
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