Stock investors have been moving their money this year to funds investing in small and medium-sized enterprises and Vietnamese firms, data showed on Jan. 12.
Some 344.6 billion won (US$321.60 million) had exited local stock funds since the beginning of this year, excluding exchange-traded funds, according to KG Zeroin, a fund rating and consulting company. Funds investing in SMEs, on the other hand, gained 32.4 billion won.
The government has made it a policy to help and nurture SMEs, helping draw money into these funds, analysts said.
“It may take time after the government‘s announcement on the KOSDAQ, but the condition for inflows will greatly improve,” Kim Hu-jeong of Yuanta Securities Korea said. “The policy effect will get the spotlight, and SME stocks will continue to perform strong for some time to come.”
Among foreign funds other than ETFs, those investing in Vietnam received 112.3 billion won, the data showed. The next biggest destination was fund investment in North American stocks with 43.9 billion won. Funds in global stocks got 38.3 billion won, those for IT sectors 19.5 billion won, and Asia-Pacific region stocks, excluding Japan, 10.9 billion won.
“Vietnam is getting attention as the new production base, as a young nation,” Kim said.
By Alex Lee and newswires (email@example.com