Shinhan Asset Management released its "2026 Fund Market Outlook" report analyzing fund market trends from an asset manager's perspective, the company said Wednesday.
According to Shinhan Asset Management, the fund market this year (as of end-November, based on fund evaluator Zeroin data) was marked by strong performance in risk assets including domestic equities, commodities, and overseas equities. Domestic equity funds posted average returns exceeding 70 percent, buoyed by the rise in Korean stock markets, while commodity funds recorded returns of 44.8 percent driven by rising gold prices. Overseas equity funds also delivered double-digit returns of 17.2 percent, maintaining stable performance.
Based on these results, the expansion of indirect investment by retail investors, pension fund inflows, and shifts in asset allocation strategies centered on exchange-traded funds are driving structural growth across the fund market, the report noted.
For the 2026 fund market outlook, the report highlighted the growing importance of U.S.-led technology stock earnings, structural growth in the AI industry, and ETF-based asset allocation strategies built on these trends. Despite bubble concerns, the AI industry is entering a growth phase accompanied by earnings and cash flow, with ETF-based diversified investment likely to serve as a standard investment strategy, the analysis showed.
The report also forecast that demand for indirect investment through public funds and ETFs will continue next year rather than direct investment in risk assets, while pension funds will shift toward products with proven performance and management structures. Accordingly, the role of asset allocation products centered on ETFs and target-date funds is expected to strengthen further.
Interest in monthly distribution funds and target-return funds is also expected to persist amid the current interest rate environment. Demand for regular cash flow, combined with market volatility, could increase utilization of products focused on risk management after achieving target returns, the report noted.
"If 2025 was a year of clear performance differentiation across asset classes, 2026 will see continued capital concentration in ETFs and pension products centered on assets with proven track records," said Song Tae-hun, head of the SDGs Strategy Team at Shinhan Asset Management. "The role of funds and ETFs from an asset allocation perspective will become increasingly important."
