You can subscribe at financial institutions such as securities companies or banks, either through their branches or online channels. Some funds may have restricted distribution channels, so please confirm whether the fund is available at your chosen institution.

For private funds, each fund may limit general investors to 49 individuals and may require a minimum subscription amount, typically between KRW 300,000,000 and KRW 500,000,000.

For public funds, the minimum subscription amount depends on the fund type and distributor, but generally, investments can start from KRW 1,000. Some distributors may set their own minimum amounts, so please check at the time of subscription.

ETFs do not have separate subscription requirements and can be traded like individual equities.

Profits arise from asset value appreciation, dividends, and interest. However, losses are also possible.

Management fees, sales charges, and other expenses are deducted from the fund’s assets and reflected in the fund’s returns. It is important to review these fees in advance.

A fund pools money from multiple investors, allowing a fund manager to diversify investments across various assets. Equities are bought and sold individually, whereas a fund invests in multiple securities simultaneously, which helps reduce risk.

Funds can be categorized by investment target - equity, bond, balanced, alternative - and by investment method - public funds, private funds, ETFs, etc. Each type has different risk/return profiles, so investors should funds based on their investment objectives.

Most investment units calculate performance over one year, referred to as the fund’s accounting period. The fund’s income during this period, after deducting management fees and expenses, is distributed to investors proportionally as dividends. 

If the fund generates profits at the end of the accounting period, these profits, net of taxes, are reinvested in additional investment units. After reinvestment, the fund’s NAV is reset to the initial NAV (typically KRW 1,000), and the number of units held by investors increases accordingly.

NAV represents the value per unit of the trust’s assets, calculated by dividing the total net assets (total assets minus expenses) by the number of units issued. NAV fluctuates daily based on the value of the invested units and is usually expressed per 1,000 units, serving as the basis for trading investment units and indicating the fund’s intrinsic value at a given time.

Taxable NAV is calculated for the purpose of determining taxation on the sale of investment units and is disclosed daily along with the NAV. Capital gains from investment units are generally not taxed, but interest and dividend income are, which is why Taxable NAV differs from NAV.

If you purchased investment units worth KRW 10,000,000 at a NAV of KRW 1,250, the number of units would be :
10,000,000/1,250∗1,000 = 8,000,000 units

If the current NAV is KRW 1,500, the valuation amount is :
1,500/1,000∗8,000,000 units = KRW 12,000,000

This means an investment gain of KRW 2,000,000 has been realized.