Signs of Market Health Spur Interest in Open-End Funds

Open-end mutual funds, which went on the market in February, are showing fairly good return rates.

An open-ended mutual fund raises money from shareholders and invests in a group of assets according to a predetermined set of objectives. Unlike closed-end funds, investors can redeem their money at any time.

The Active Stock Fund, managed by Midas Asset Management, recorded an 8.8 percent gain over the two month period after its establishment.

KTB Asset Management Co.'s Blended Fund, which was set up in March, is showing a 5.7 percent return rate, while that of Yurie Asset Management's Index 200 Stock Fund stands at 4.8 percent.

SEI Asset Korea's SEI Ace Plus Blended Fund and Midas's My Asset Chingiz Khan Growth 2, which report annualized returns, posted annualized 3-4 percent returns.

Open-end funds were not popular among investors when they were first allowed to start in February, but they are gaining popularity due to the recent rally in the local stock market.

Mutual funds as a whole, including open-end funds, saw net inflows of 887 billion won ($684 million) from February through Friday, compared with an outflow of more than 2 trillion won from October until January.

by Chung Jeh-won