The domestic equity fund's assets under management increased by more than 600 billion won in just one week, recording the largest increase in three months.
According to the fund evaluation company FnGuide on the 6th, the total assets under management of 1,039 domestic equity funds amounted to 56.183 trillion won as of the 4th. During the recent week (June 30 to July 4), it increased by 619.1 billion won. This appears to be influenced by the rebound in the domestic stock market, entering a bullish phase.
So far this year, the largest weekly increase in domestic equity fund assets occurred in April. The first week of April (March 31 to April 4) and the second week (April 7 to 11) saw increases of 846.5 billion won and 1.8918 trillion won, respectively. At that time, the Constitutional Court announced President Yoon Suk-yeol's impeachment, and the Trump administration in the United States announced a mutual tariff imposition that was later suspended for 90 days. This reduced uncertainty and attracted investors.
Throughout the year, domestic equity funds saw an increase of 3.725 trillion won in assets under management. This is about half of the increase in assets under management for overseas equity funds (7.5029 trillion won). The total asset size also indicates that overseas equity funds are about 340 billion won ahead of domestic equity funds.
However, in terms of revenue, while the year-to-date revenue of domestic equity funds is 32.62%, that of overseas equity funds stands at -0.67%. This suggests that the asset size of domestic equity funds could continue to grow.
Short-term fund flows are expected to be determined by the upcoming results of trade negotiations between Korea and the United States. The end date for the tariff suspension set by the Trump administration is fast approaching on the 8th.
Yeo Han-koo, head of the Trade Negotiation Bureau at the Ministry of Trade, Industry and Energy, followed by Suh Hoon, director of the National Security Office, visited the United States for negotiations. It appears that negotiations will continue on conditions regarding tariff rates or extending the period of mutual tariff suspension in the U.S.