April 26, 2024

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[THE INVESTOR] Gold funds in Korea have fared poorly over the past months ahead of a US interest rate decision, a market tracker said on Dec. 14.

These funds chalked up an average return of minus 11.6 percent over three months, the worst performer among local investment funds worth 1 billion won (US$920,000) or more, according to financial information provider FnGuide.

Comparable yields were minus 5.6 percent for stock funds, minus 3.3 percent for funds investing in farm products and minus 2.7 percent for commodity funds.

According to a separate survey by fund evaluator KG Zeroin, nine gold funds in Korea registered an average return of minus 11.5 percent during the cited period.

The yield was dwarfed by 4.1 percent for overseas stock investment funds and 0.2 percent for commodity funds.

The dismal performance of the gold funds was attributed to falling demand for the yellow metal amid expectations the US Fed would jack up its benchmark interest rate at this week’s policy meeting.

By Alex Lee and newswires (alexlee@heraldcorp.com)