SEOUL, April 15 (Korea Bizwire) – Investors have pumped in more cash in bond funds than stock funds so far this year as they seek more stable returns, a fund rating and consulting company said Friday.
Domestic bond-focused funds have seen a cash inflow of 1.37 trillion won (US$1.2 billion) this year through April 12, KG Zeroin said in a statement.
In contrast, investors withdrew a total of 465 billion won from their stock funds. Cash outflows from the exchange traded funds (ETFs) were not included in the tally, it said.
Investors are increasingly finding fewer investment vehicles to park their money as banks offer lower rates for their deposits and equity funds remain vulnerable to market volatility.
The Bank of Korea is widely expected to cut its key rate, currently at an all-time low of 1.50 percent, in the coming months to support growth in Asia’s fourth-biggest economy. Korea’s economy grew 2.6 percent last year, slowing from the previous year’s 3.3 percent growth.’