Rise in ISA Accounts and ETF Investment Trends
There is a rapid increase in the number of investors interested in Individual Savings Accounts (ISAs). This surge is primarily due to the tax benefits, notably the ability to enhance investment returns by keeping the account for at least three years. The annual investment limit is set at 20 million KRW, with tax-free benefits up to 2 million KRW and a 9.9% tax rate applied on amounts exceeding this. Investors often diversify their portfolios by focusing on high-dividend stocks and international ETFs.
Meanwhile, despite the upward trend in the KOSPI, individual investors remain skeptical about the domestic market. As a result, there is a growing inclination towards parking-type ETFs that prioritize stability, as well as inverse ETFs betting on a potential decline in the KOSPI. Notable ETFs attracting substantial funds include 'KODEX Money Market Active', 'RISE Money Market Active', and 'KODEX 200 Futures Inverse 2X', with investments in the trillions of KRW. Nonetheless, analysts suggest that the continued strength in semiconductor stocks and strengthening institutional frameworks likely indicate sustained growth for the KOSPI.
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"5000 points? Hard to believe"…Nervous individual investors flock to certain areas - E-DailyDespite last month's 'bull market' for KOSPI, individual investors couldn't shake off their doubts about the domestic stock market. This led to trends of investing in parking-type ETFs, known for high security, and aggressively betting on inverse ETFs that benefit from KOSPI declines. The KOSPI index had its first-ever...
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