KB Asset Management announced on the 19th that it launched the 'KB Nationwide Quick Start Target Asset Allocation Fund' aimed at investors before employment.
The 'KB Nationwide Quick Start Target Asset Allocation Fund' is a product that applies the 'glide path' to automatically adjust the portfolio according to the investor's life cycle.
Assuming retirement in 2070, which is 45 years from now, it provides a customized investment strategy suitable for investors with relatively long investment periods, such as children, teenagers, and college students.
The fund maintains a 100% allocation to risky assets at the beginning of the investment period and, starting from 2035, applies the 'KB Nationwide TDF' glide path to reduce the allocation to risky assets to 80% or less. It will then automatically adjust the portfolio in accordance with the investor's life cycle until the set retirement date in 2070.
According to KB Asset Management, the fund will construct the asset allocation portfolio more aggressively than existing target date funds (TDF) that focus on employment and retirement timing. Additionally, as it does not apply the risky asset limit (80%) of TDFs, it can maximize long-term growth potential.
For young investors who have a long time until retirement, the period of future income is long, which means that even if the stock market declines, they can benefit from lowering the average purchase price through continuous partitioning.
The 'KB Nationwide Quick Start Target Asset Allocation Fund' is currently available for subscription at KB Securities.