One out of four funds over 10 years old has a lower return than term deposit

Input 2021.02.23 16:50

It was found that one out of four long-lived funds that had been established 10 years ago had a 10-year return lower than that of term deposits. Analysis shows that stock direct investment has increased as the perception that long-term investment in funds does not guarantee high returns has spread among investors.

According to KG Zeroin, a fund evaluator on the 23rd, 24.67% of 1301 funds set for more than 10 years (excluding private equity funds) have a 10-year return (February 22, 2011-February 22, 2021) that does not meet the term deposit interest rate. It reached (321).

If the annual term deposit market interest rate (1.04~3.69%) compiled by the Bank of Korea is compounded, the 10-year term deposit yield is 23.73%. Considering that the average fund fee is 0.5% per year, which corresponds to 5% accumulated over 10 years, the return on the fund must exceed 28.73% in order to earn more than deposits.

When looking at funds that were inferior to term deposits by type, equity-type funds accounted for about half. Domestic equity-type funds accounted for 72 (22.42%) and overseas equity-type funds accounted for 69 (21.49%).

In the financial investment industry, it has been evaluated that direct investment by individual investors has increased due to the poor return on funds. Compared to the fund’s high commission, the rate of return was not supported as much, and the perception that’I’d rather run directly because it’s frustrating’ spread among investors.

According to the Korea Securities Depository, the newly established fund increased by 129.37% from 3,33 trillion won in 2016 to 6,9573 trillion won in 2017, but the rate of increase has slowed since. Last year, the annual increase rate of fund set-up was 23%, significantly lower than the increase rate of 108.62% in credit transaction loan balance. Credit loans are loans received by individual investors for direct stock investment.

◇ 53% average return on longevity funds… Only 3 funds with more than 300%

The longevity fund averaged 53.20% of return. It is a simple average without considering the set amount. During the same period, the US NASDAQ index rose 390.96% from 2756.42 to 13,533.05, and the KOSPI index rose 56.33% from 1969.92 to 3079.75, which is a lower level.

In particular, there has been a widespread awareness that large-cap stock investments can earn more than funds. Domestic blacksmith Samsung Electronics (005930)Is up 338.16% from 18,760 won (applied par value) to 82,200 won in 10 years. On the other hand, among longevity funds, only three (0.2%) products with a 10-year yield exceeding 300%.

1055 (81.09%) of longevity funds had a 10-year return of 0% or more and less than 100%. ▲ More than 100% and less than 200% (133 10.22%) ▲ Negative (-) returns (93, 7.15%) ▲ More than 200% and less than 300% (17, 1.31%).

Ahn Dong-hyun, professor of economics at Seoul National University, said, “The biggest reason the fund market is sluggish is because there is a growing perception that it is not’money value’ due to sluggish long-term returns.” “The situation is deteriorating in confidence.”

◇ Gold Bridge Management, which ranks last in return, Mirae Asset Asset Management

The longevity fund with the lowest return was’Gold Bridge Special Asset 8’managed by Gold Bridge Management, which recorded a loss rate of 98.80%. This was followed by’Gold Bridge Special Asset 17′ of the same asset management company, which recorded a loss rate of 97.46%. The set amount for the two funds is KRW 65 billion and KRW 69.5 billion, respectively.

‘Samsung KODEX Machinery Equipment Listing Index managed by Samsung Asset Management[주식]’,’Samsung WTI crude oil special assets 1[WTI원유-파생](A)’ had the disgrace of being ranked in the bottom 3-4 of the rate of return. The two funds recorded a 10-year loss rate of 79.85% and 76.29%, respectively. The set amount is 44.6 billion won and 2992 billion won, respectively.

The longevity fund with the highest return is the Mirae Asset TIGER NASDAQ 100 Listing Index managed by Mirae Asset Asset Management.[주식]’Was. The 10-year yield was 487.33% and the set amount was 9 billion won.

The 2nd and 3rd place in the return rate were’AB US Gross (stock-reindirect) type A’of AB Asset Management and’Mirae Asset Chindia Consumer 1 (equity) type A’of Mirae Asset Asset Management. The returns of the two funds are 311.96% and 300.67%, respectively.