South Korea Mutual Fund Market

Abstract

Mutual fund in South Korea is a stage where development of economy is guaranteed. Mutual Fund what is it? It is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers, who invest the fund’s capital and attempt to produce capital gains and income for the fund’s investors. A mutual fund’s portfolio is structured and maintained to match the investment objectives stated in its prospectus. One of the main advantages of mutual funds is that they give small investors access to professionally managed, diversified portfolios of equities, bonds and other securities, which would be quite difficult (if not impossible) to create with a small amount of capital.Korean economy has developed rapidly during the last several decades. We do not believe that the economy may grow with that speed in the near future. In a sense, it is experiencing a kind of growth pain. Korean capital market is evolving and will face a major restructuring in the near future.10 Korea sets up a new system including the Capital Market Consolidation Act. Korea intends open new sophisticated Capital market to activate the economy. The result matches with other previous studies. With its mighty industrial base, educated work force, and high savings rate, South Korea may well be a good place for investment in the long run. But as was true with Mexico, there is no reason to rush in. Even though the devaluation of the Mexican peso occurred in late 1994, and an American-led rescue was cobbled together quickly, the stock market did not hit bottom until March 1995. Anyone who sat out the entire year and then ventured into the Mexican market still enjoyed a 75 percent gain for the last two years.