South Korean funds saw a sharp rise in net inflows last year as investors turned to indirect instruments amid record-low interest rates, while stock funds stayed weak from the tedious equity market, data showed Tuesday.

The net asset value of stocks, bonds and real estate-related funds reached a combined 385.16 trillion won ($346.7 billion) at the end of 2014, up 13.93 percent from a year earlier, according to data by the Korea Financial Investment Association.

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

The rise was driven by short-term funds such as money market funds and bond funds as the demand for safer assets increased amid economic uncertainties at home and abroad, while equity funds slowed down in tandem with the tepid stock market.

MMFs, which mostly invest in short-dated bonds and commercial papers, drew 82.36 trillion won last year, a 24.05 percent hike from a year earlier, while money inflow to equity funds declined 7.23 percent to 79.31 trillion, the KOFIA said. It was the first time in seven years that MMFs surpassed stock funds.

South Korea’s benchmark index KOSPI moved in the tightest range ever last year in the absence of growth momentum, showing a volatility of 10.5 percent.

The net asset value of funds investing in bonds increased 26.38 percent year-on-year to 70.7 trillion won, while hybrid funds made up of a mix of stocks and bonds inclined 4.95 percent to 10.38 trillion won, data showed.

The size of fund of funds, mutual funds that invest in other funds, soared 56.71 percent to 16.34 trillion won, and funds investing in real estate surged 21.88 percent to 29.69 trillion won, they noted. (Yonhap)