As the domestic stock market rises steeply, retail investors are growing more anxious. The FOMO (fear of missing out) mindset—"Am I the only one missing the opportunity?"—is dominating the market, but many also worry that entering now could leave them buying at the peak later.
In particular, the extreme volatility, with moves of more than 5% in a single day, is a heavy psychological burden for market participants. Bank deposits fall short of return expectations, yet the risks feel too great to take an aggressive approach—a classic dilemma.
Experts advise investors at this crossroads to focus on a "hybrid strategy" that follows the growth of key sectors while securing downside rigidity. These so-called "FOMO breaker" products deploy balanced asset allocation and diverse strategies to manage market volatility. The core structure combines the profitability of stocks with the stability of bonds, or uses strategically designed products from securities firms to protect principal as much as possible while aiming for strong performance.
ChosunBiz asked major securities firms and asset managers to recommend FOMO breaker products that are suitable now for investors seeking both stability and profitability.
The first alternative cited by large securities firms is the investment management account (IMA). In this product, a securities firm earns returns by managing client funds across corporate finance, corporate bonds, and alternative investments, among other asset operations. It guarantees principal based on the firm's own credit and seeks higher returns than bank deposits, which is a key strength.
Final returns vary with performance, but with a target annual return of 8% and principal protection, it is viewed as an optimal option in today's highly volatile market. Only three firms are currently authorized to sell IMAs: Korea Investment & Securities Co., Mirae Asset Securities, and NH Investment & Securities. Every IMA sold out soon after launch, proving investors' strong interest.
A massive amount of investment money is also flowing into issuance notes. Like IMAs, issuance notes are funded on a securities firm's own credit with principal guaranteed, but unlike IMAs, they offer a fixed return as a financial product. In essence, it is a time deposit sold by a securities firm, not a bank. In particular, issuance notes from highly rated KB Securities are drawing investor attention for stability and profitability.
Profit-and-loss tranche public funds that can partially defend the downside even if the market corrects are spreading by word of mouth among investors. The strategy of a securities firm taking a junior tranche and absorbing a certain portion of losses first was originally used in private funds. Korea Investment & Securities Co. applied this strategy to public funds, greatly expanding investor choices.
In an environment where a rally continues, profit-and-loss tranche funds can underperform ordinary funds. Up to the target return, retail investors receive a larger share of profits, but for returns above that, a larger share goes to the securities firm. With the market surging in the first half of this year, interest is high in profit-and-loss tranche public funds that bet on index gains while partially defending losses.
This is a product sold for a limited period, yet each launch drew massive inflows. Since introducing the first product in 2023, Korea Investment & Securities Co. has rolled out a total of 17 profit-and-loss tranche public funds, whose total assets raised exceeded 1.7 trillion won.
Although semiconductor stocks have jumped, for investors who still want to increase equity exposure, financial firms recommend wraps or compressed exchange-traded funds (ETFs) that also hold bonds.
Wraps, customized products in which a securities firm manages client assets on their behalf, concentrate investments in around 20 or so stocks. Yuanta Securities Korea, managed by Head of Team Oh Gyeong-taek, a former analyst, together with top private bankers (PBs) turned managers, launched the Yuanta Korea Wrap in Nov. last year. The wrap attracted 250 billion won in just over six months.
Samsung Asset Management introduced the KODEX Samsung Electronics SK hynix Bond Mix ETF, which concentrates on Samsung Electronics and SK hynix while holding bonds at a 50% weight to temper volatility. The ETF surpassed 1.5 trillion won in net worth a little over two months after listing on Apr. 7.
The equity fund NH-Amundi Pilseung Korea Securities Investment Trust, sold by Hyundai Motor Securities, invests in high-quality domestic corporations with strong growth potential. The fund's 1-year return exceeds 300%, outpacing the KOSPI 200.
A silver inverse ETN sold by Samsung Securities is also cited as an unconventional alternative. It seeks returns when silver prices fall, making it suitable for investors looking to hedge against a pullback in previously surging commodity prices or to partially hedge risks in existing investment assets.
Toss Securities has introduced an information service for investors whose FOMO has grown amid a record-breaking bull market. With real-time translations of overseas earnings calls and AI-based market analysis, the service helps investors make decisions based on objective information rather than chasing rallies driven by FOMO.