There is no parent whose child can beat the stock market… ‘This product’ has a return rate of up to 28%

The children’s fund, which is mainly registered in the name of minor children and used as a means of gifting, is on track with a return of close to 30% this year. It is also noteworthy that they provide various services such as financial education programs for children and opportunities to visit overseas companies.

According to fund rating agency FnGuide on the 26th, among domestic children’s funds with a set amount of over 1 billion won, Korea Value 10-Year Investment Children’s Securities Investment Trust 1 (Stock) Series achieved the highest return of 28.46% this year. Considering the characteristics of long-term investment products, the five-year rate of return is even higher, reaching 72.85%. IBK Children’s Index Securities Investment Trust and NH-Amundia Isarang Savings Securities Investment Trust 1 Series are also maintaining solid returns of 14-17% compared to the beginning of the year.

A total of 26 children’s funds, including this one, have recorded an average return of 12.79% and a 5-year return of 34.9% so far this year.

Even though it is a children’s fund, there are no restrictions on adults’ membership. However, as it provides various benefits for targeted child subscribers, many people sign up under the names of minor children. After signing up at a young age, you can use it to raise a lump sum of money needed when you become an adult, such as for school fees or wedding funds. In line with the nature of long-term investment, we select and invest in stocks with high future growth value at home and abroad, focusing on large-cap stocks that are less influenced by the market.

In the case of Mirae Asset Our Child 300 Million Securities Investment Trust G1 Series, which has the largest actual operating amount, it includes Samsung Electronics, SK Hynix, LG Energy Solution, and Naver. At the same time, we also invest in long-term funds that are expected to have high growth and expansion in the Asia Pacific region, such as TSMC and Alibaba Group.

In particular, it is noteworthy that they provide a variety of services tailored to the needs of their children. As of this year, the number of participants in the ‘Our Child Global Leader Journey’, in which Mirae Asset Global Investments provides fund subscribers with the opportunity to visit famous overseas companies, has reached 13,000. This year’s participants toured China’s largest electric vehicle company BYD and Alibaba Group’s new distribution center Hemasiansheng. Shinhan Asset Management sends economic letters and asset management reports written in an easy-to-understand manner for children, allowing them to naturally become interested in the economy and investment. Among subscribers in their 4th to 6th year of elementary school, those selected through a lottery are also given the opportunity to participate in economic education programs such as simulated investment games on Jeju Island.

There is also a lot of demand for using it as a tax saving tool for gifting. The amount paid into a fund account registered in the name of a minor child can be gifted tax-free in amounts of 20 million won every 10 years. If you sign up as soon as your child is born, you can receive a total of up to 40 million won by the age of 20. If you sign up for a children’s fund through a pension savings account, you can take advantage of the tax deferral effect by only deducting a low rate of tax when you receive your pension later, unlike a regular account where you pay taxes when you earn profits.