17 fund types available, including shares, bonds, gold and MMF
Toss Bank has launched a fund investment service that automatically channels interest earned from a customer's bank account into funds of their choice. The minimum investment is 1,000 won, and products carry plain-language names designed to make it easy to understand what each fund invests in.
The bank announced Thursday it had rolled out 17 fund products covering domestic and overseas shares, bonds, gold and money market funds (MMF). The service is available to individual customers aged 19 or older who hold a Toss Bank account in their own name. Toss Bank handles distribution while each asset management firm manages the underlying funds.
Each product carries both its official fund name and a simplified descriptive label explaining the investment target and strategy. For example, "Kyobo Power Index Securities Investment Trust 1 (Equity) Ce" is displayed as "Track the Kospi 200," while "Korea Investment Gold Accumulation Special Asset Investment Trust (Gold-Fund of Funds) Ce" appears as "Accumulate gold in small amounts."
The product lineup spans major indexes, dividend shares, global semiconductors and domestic government bonds. Products using complex derivative structures or leverage and inverse strategies were excluded. Risk ratings range from level 1 to level 6, with five products falling in the lower-risk categories of levels 5 and 6.
Customers can invest in three ways: a one-time purchase, regular scheduled investment or automatic reinvestment of account interest. The "consistently accumulate" feature lets customers set a daily, weekly or monthly investment amount starting from as little as 1,000 won, and applies to 16 of the 17 products, excluding the MMF.
Customers who activate the "invest interest into funds" feature will have the interest paid into their Toss Bank account automatically directed into a fund of their choosing each time interest is credited. The feature automates the transfer of deposit interest into investment assets, linking saving and investing.
All products are online-only Ce-class funds with no purchase or redemption fees. However, total fees — including management and distribution charges — apply on a per-product basis, and additional costs such as securities transaction fees may also arise. Amounts invested through the interest reinvestment feature are subject to loss depending on fund performance.
Toss Bank also improved redemption convenience. For the Hana Personal MMF No. 1 Ce, customers who submit a redemption request between 9 a.m. and 5 p.m. on a business day can receive proceeds immediately within the same-day payment limit. For the "invest in global semiconductors" and "track the NASDAQ 100" funds, redemption requests submitted before 5 p.m. on a business day will be settled two business days after the request date.
First-time users must complete an investment profile assessment, and customers aged 65 or older are subject to enhanced protection procedures and a follow-up call. To mark the launch, the bank is offering 3,000 won to customers who open a fund account and 100 won to those who complete the investment profile assessment.
"We designed the service so customers can understand what they are investing in through plain product names and build up fund holdings with small amounts or simply by using their account interest," a Toss Bank official said. "We will provide thorough information on products and risks and strengthen consumer protection."
forest@heraldcorp.com
