Investment funds in South Korea saw their net asset value decrease by more than 5 trillion won ($4.7 billion) in March from a month ago as investors scurried to withdraw from bond funds and other short-term funds, data showed Thursday.

According to the Korea Financial Investment Association, net asset value of stocks, bonds and real estate-related funds reached a combined 337 trillion won at the end of March, down 5.4 trillion won from the end of February.

The net asset value refers to the amount funds received from contractors and the revenue recorded during the cited period.

The bond funds and money market funds were hit by heavy outflows amid expectations that bond yields may rise in tandem with an economic recovery and the U.S. Federal Reserve’s tapering, the association said.

Also, institutional investors withdrew their money from money market funds to settle unpaid bills ahead of the month-end, it said.

A money market fund is a pool of money that is mostly invested in short-dated bonds, commercial papers and certificates of deposit.

The net asset value of money market funds fell 3.3 trillion won on-month to 74.9 trillion won last month, and funds that invest in local bonds saw their net asset value decline 2.6 trillion won during last month.

The net asset value of stock funds also fell 1.3 trillion won, according to the data, as the country’s stock market showed a big sway, affected by concerns over a slowdown in the Chinese economy and the pace of the Fed’s scaling back of its bond-purchasing program.

The country’s key stock index, the KOSPI, closed at 1,985.6 points on March 31 after dipping to as low as 1,919.5 points on March 20. (Yonhap)