What is the new start for TDF2025 growth and stability that has arrived at the target point?
Mar 31, 2025
2025 is a special year for retirement pensions. It marks the 20th anniversary of the introduction of the domestic retirement pension system in 2005, and it has achieved quantitative growth of more than 400 trillion won in reserves. On top of that, TDF, a representative pension fund, is facing 'target date' for the first time this year, and interest in the pension market is increasing.
According to the Financial Supervisory Service's pension portal, the nation's retirement pension reserves reached an all-time high of 426.434.4 trillion won at the end of last year. The retirement pension market, which was below 50 trillion won until 2011, is rapidly increasing, renewing its maximum accumulation every year. The retirement pension transfer system will be implemented in October last year, and the growth rate of the retirement pension market is expected to accelerate.
One of the factors driving the retirement pension market growth over the past 20 years is 'TDF (target date fund)'. TDF, which adjusts the proportion of risky and safe assets and allocates assets according to the retirement goal (vintage), has established itself as a representative long-term investment tool for pension investors since its introduction in 2017. Among them, the target point of the lowest vintage 'TDF2025' will arrive, and a new start for TDF subscribers will begin for the first time.
What choices should TDF2025 subscribers make now. First of all, the TDF's target time does not mean the maturity of the fund. The fund will remain in place and will be managed with the limit of '40% of risky shares'. If you are a subscriber who does not need to withdraw immediately, you can continue stable asset management through the existing TDF2025.
If you want to slightly increase the proportion of risky assets, you can consider moving to a higher vintage TDF. For example, TDF 2030 or 2035 has a slightly higher proportion of risky assets compared to 2025, but since the target time is only about 5 to 10 years away, the proportion of safe assets is also high, which is less burdensome. If you want to continue your investment in your pension account, you can choose a TDF that suits you, taking into account risk preferences, expected returns, and the nature of the funds.
Whatever choice TDF2025 subscribers make, or whether they are new to TDF, the principle of choosing 'Good TDF' is clear. First, long-term performance should be excellent and low volatility due to the nature of pension funds. Second, risk adjustment performance should be excellent considering various investment risks such as exchange rates, not just returns. Third, funds with a large set amount are advantageous because they are selected by many investors due to their stable management for a long time.
Currently, Mirae Asset Asset Management is selected by many investors in the domestic TDF market. According to Zero-In, the total net worth of the domestic TDF market stood at 17.9 trillion won as of Feb. 28, of which Mirae Asset Asset Management TDF accounted for 37% of the market with 6.6 trillion won. This is because Mirae Asset TDF showed excellent long-term performance, including five-year returns and Sharpe Ratio. In particular, 'Mirae Asset Strategy Allocation TDF', one of the Mirae Asset TDF series, showed that the five-year Sharpe Ratio item was the best in all vintage five-year units from 2025 to 2045.
Mirae Asset TDF, which managed TDF's risk-adjusted return regardless of market conditions, also received excellent evaluation from the recent paper published by the Korean Securities Association. Analysts say that the TDF strategy was excellent as a result of considering actual performance considering various investment risk factors, not just rising fund returns due to the good market.
According to the Financial Supervisory Service's pension portal, the nation's retirement pension reserves reached an all-time high of 426.434.4 trillion won at the end of last year. The retirement pension market, which was below 50 trillion won until 2011, is rapidly increasing, renewing its maximum accumulation every year. The retirement pension transfer system will be implemented in October last year, and the growth rate of the retirement pension market is expected to accelerate.
One of the factors driving the retirement pension market growth over the past 20 years is 'TDF (target date fund)'. TDF, which adjusts the proportion of risky and safe assets and allocates assets according to the retirement goal (vintage), has established itself as a representative long-term investment tool for pension investors since its introduction in 2017. Among them, the target point of the lowest vintage 'TDF2025' will arrive, and a new start for TDF subscribers will begin for the first time.
What choices should TDF2025 subscribers make now. First of all, the TDF's target time does not mean the maturity of the fund. The fund will remain in place and will be managed with the limit of '40% of risky shares'. If you are a subscriber who does not need to withdraw immediately, you can continue stable asset management through the existing TDF2025.
If you want to slightly increase the proportion of risky assets, you can consider moving to a higher vintage TDF. For example, TDF 2030 or 2035 has a slightly higher proportion of risky assets compared to 2025, but since the target time is only about 5 to 10 years away, the proportion of safe assets is also high, which is less burdensome. If you want to continue your investment in your pension account, you can choose a TDF that suits you, taking into account risk preferences, expected returns, and the nature of the funds.
Whatever choice TDF2025 subscribers make, or whether they are new to TDF, the principle of choosing 'Good TDF' is clear. First, long-term performance should be excellent and low volatility due to the nature of pension funds. Second, risk adjustment performance should be excellent considering various investment risks such as exchange rates, not just returns. Third, funds with a large set amount are advantageous because they are selected by many investors due to their stable management for a long time.
Currently, Mirae Asset Asset Management is selected by many investors in the domestic TDF market. According to Zero-In, the total net worth of the domestic TDF market stood at 17.9 trillion won as of Feb. 28, of which Mirae Asset Asset Management TDF accounted for 37% of the market with 6.6 trillion won. This is because Mirae Asset TDF showed excellent long-term performance, including five-year returns and Sharpe Ratio. In particular, 'Mirae Asset Strategy Allocation TDF', one of the Mirae Asset TDF series, showed that the five-year Sharpe Ratio item was the best in all vintage five-year units from 2025 to 2045.
Mirae Asset TDF, which managed TDF's risk-adjusted return regardless of market conditions, also received excellent evaluation from the recent paper published by the Korean Securities Association. Analysts say that the TDF strategy was excellent as a result of considering actual performance considering various investment risk factors, not just rising fund returns due to the good market.
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This article was translated by Naver AI translator.
