Kiwoom Asset Management Temporarily Offers Kiwoom Nasdaq 100 Smart Investor Target Conversion Fund

[Asia Economy Reporter Hwang Yoon-joo] Kiwoom Asset Management is launching the Kiwoom Nasdaq100 Smart Investor Target Conversion Securities Investment Trust [Mixed - Fund of Funds], which invests in the Nasdaq market using a dollar-cost averaging strategy.

This fund is a unit-type product sold for a limited period. Investors who wish to subscribe can do so at SC First Bank from the 26th to the 29th of this month, and at Hana Bank, NH Investment & Securities, and Hanwha Investment & Securities from the 26th to the 30th.

The Kiwoom Nasdaq100 Smart Investor Target Conversion Fund primarily invests in ETFs that track the performance of the Nasdaq100 index. The Nasdaq100 index is a stock index composed of 100 leading companies listed on the US Nasdaq market. Representative constituent companies include Apple, Microsoft, Amazon, Tesla, Alphabet (Google's parent company), NVIDIA, and Meta (parent company of Instagram and Facebook). Simply put, investing in the Nasdaq100 ETF is similar to investing in all 100 leading innovative US companies.

Moreover, instead of purchasing all assets at once upon establishment, this fund gradually acquires Nasdaq100 ETFs using a dollar-cost averaging strategy. The strategy buys less (3%) when the market rises and more (4%) when the market falls, allowing investors to benefit from a diversified purchase timing similar to investing in a systematic investment plan, even with a lump sum.

The rebalancing strategy is executed when a target return of 5% (based on A Class) is achieved, at which point the increased proportion of Nasdaq100 ETFs is reduced to about 30% of total assets. This reduces volatility and secures cash to seek new profit opportunities. Finally, when a target return of 10% (based on A Class) is reached, the fund automatically converts to a bond-type fund to preserve returns.