Need for Strategic Changes in Mutual Funds due to Rising ETF Popularity
As the ETF market continues to grow, the gap between traditional mutual funds and ETFs is widening. According to the Capital Markets Institute, mutual funds that differentiate their portfolios from ETFs see an increase in capital inflow. Particularly, including differentiated assets such as small-cap stocks or high-risk bonds in portfolios is favorable for attracting funds.
For traditional mutual funds, government support and regulatory improvements are essential, and changes in evaluation criteria that satisfy investors are also suggested. Mutual funds need a strategic approach different from ETFs, such as focusing on securities that are not held in large quantities by ETFs. This differentiation can significantly boost capital inflows.
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