Korea Investment & Securities said on Jan. 23 that, as of the end of 2025, cumulative subscriptions for its profit-loss differentiated public funds came to 1.08 trillion won, exceeding 1 trillion won. Total assets under management, including the company’s contributions, were 1.38 trillion won.

A profit-loss differentiated fund is designed to separate risk and returns among investors, allowing participation within a single product under different risk-return structures.

The profit-loss differentiated public funds supplied by Korea Investment & Securities adopt a structure in which customers participate as senior investors and financial firms such as Korea Investment & Securities participate as junior investors, strengthening investor protection elements.

If losses occur, the junior tranche absorbs losses first up to a certain level, cushioning risk for senior investors. The fund is also designed so that a relatively stable allocation structure is applied to the senior tranche even in profit-generating periods.

Korea Investment & Securities explained that this senior-junior tranche structure can structurally reduce volatility burdens for individual investors. It said it can also function as a buffer to reduce excessive loss exposure during periods of market volatility.

Kim Sung-hwan (김성환), CEO of Korea Investment & Securities, said, "Profit-loss differentiated funds are designed to improve the quality of the investment experience by structurally easing volatility that individual investors may find difficult to bear, as the company shares investment risk." He added, "We will continue to expand consumer protection-type products tailored to investors’ preferences and life cycles to strengthen our wealth management system."