The move came as the country’s key index jumped 8.03 percent in January, fueled by strong foreign buying. Stock fund redemption generally increases when the market is in a bullish mode.
“The outflow from the stock funds can also be attributable to investors‘ growing preference for other financial vehicles, particularly to exchange-traded funds,“ said Kim Hoo-jeong, an expert at Yuanta Securities.
Over the past month, ETFs enjoyed a capital inflow of more than 1.3 trillion won, according to market tracker FnGuide.
By Ram Garikipati and newswires (email@example.com)