KCGI Junior Fund, Top Returns by Period

In celebration of Family Month in May, KCGI Asset Management analyzed data from the fund evaluation company KG Zero-in and found that as of April 30, the KCGI Junior Fund recorded a 6-month return of 27.5% and a 2-year return of 23.7%. The 1-year return was 23.4%, the 3-year return 21.0%, and the 5-year return 71.3%.

Thanks to the stable strong returns of the KCGI Junior Fund, capital inflows have continued. As of April 30, the net assets reached 101.2 billion KRW.

The KCGI Junior Fund is a product available only to those under 20 years old, operated in a way that diversifies investments across global stocks, and is designed with a low fee rate suitable for long-term investment.

According to the most recent quarterly report, the main investment countries are the United States at 70.2%, followed by South Korea at 13.7%, Japan at 4.1%, Taiwan at 4.1%, and Europe at 2.8%, forming a portfolio concentrated mainly in the US, South Korea, Japan, and Taiwan.

KCGI Asset Management is offering a gift tax-free reporting agency service until the end of next month for individual customers who open accounts with KCGI Asset Management and invest in KCGI funds.

A KCGI Asset Management representative explained, "For minors, gifts up to 20 million KRW over 10 years and for adults up to 50 million KRW can be given tax-free. When gifting funds in a regular installment form, it is possible to report the gift first without financial burden and then make small gifts later."

They added, "For minors, if a monthly installment of 189,000 KRW is set over 10 years for gifting, it is possible to report the gift without gift tax."

In a survey conducted by KCGI Asset Management in February with 859 customers, a high proportion expressed a desire to gift funds to their children instead of pocket money. Among those who wanted to gift something instead of pocket money, 62% chose funds, and among individual funds, the Junior Fund was overwhelmingly selected by 75.9%.

The main reason for choosing funds was "to help develop habits of saving and investing" (38%). This was followed by "to help build a lump sum" (22%), "to learn about investing" (19%), "to aid in economic studies" (18%), and "because investing in individual stocks is risky" (5%). This indicates that fund investment is seen as a way to promote asset growth and investment education.

A KCGI Asset Management representative explained, "Gifting children a fund is meaningful in terms of fostering investment habits rather than giving them goods or cash."