By Park Hyong-ki
Staff Reporter

The net asset value of equity funds, including both domestic and overseas, plunged to their lowest level in 11 months, amid a bearish run on the stock market.

According to the Asset Management Association of Korea (AMAK), the net assets of equity funds stood at 114.5 trillion won as of Monday, down 2.9 trillion won from a day earlier.

The association said this is the lowest level since September last year when assets were recorded at 114 trillion won.

The previous biggest fall was in June when the equity funds fell over 12 trillion won.

It attributed the drop to the relentless freefall of the benchmark KOSPI, igniting a growing number of investors to redeem their investments in both onshore and offshore funds.

Domestic stock funds only saw a net inflow of capital worth 126 billion won, Monday, while capital outflow stood at 138 billion won.

This is the first time in eight trading sessions where net outflow overtook net inflow.

Meanwhile, overseas equity funds saw a net inflow of 31 billion won, while their net outflow recorded 39 billion won.

Money market funds saw a net outflow of 202 billion won, while bond funds recorded an outflow of 722 billion won.

Equity funds have been losing their vigor after hitting a record high in net value last May on the deepening economic woes stemming from a variety of problems, including the credit squeeze, rising oil prices and inflation.

Such negative factors have put downward pressure on stocks all over the world.

In May, funds investing in domestic and foreign shares reached 143.8 trillion won in net asset value, their highest ever.

phk@koreatimes.co.kr