When the Riksbank zeroed key rate as the returns on bank savings accounts is minimal. Low interest rates have meant that Swedish people have instead invested in funds to get saving money to grow. With only a few days left in the year, everything indicates that investment in mutual funds reach record levels this year and thus it strikes five year old record margin.
The fund market that has been most strongly during the year are India and five funds with investments in the country which all yielded a return of at least 70 percent tops the list of the year’s strongest funds. The stock markets in Thailand and Indonesia have been going strong. The worse things have gone for those investors who invested in Russia. The conflict in Ukraine with subsequent sanctions and a raging oil prices weighing on the Moscow Stock Exchange significantly. Several Russia funds have fallen more than 30 percent and Eastern Europe is the market that have passed the worst in the fund research firm Morningstar comparison.
And it seems as the Swedish fund investors have made wise choices. We bought the India funds, which performed very strongly, but sold China funds in 2014. Many have also bought funds with investments in North America, a market that has grown strongly.
And even unitholders who invest in Russia becomes steadily less . The last 4-5 years, the Swedes have sold Russia funds, owning close to 65 billion a few years ago has decreased to around 15 billion.
– After the financial crisis, the Swedes tried to get away from the narrow country funds and gone all more towards buying broad global funds. That’s good, because then saving more shock-resistant, says Claes Hemberg, savings economist at Avanza.
– New this year is the corporate bond funds that really had an impact.
Are it is a good choice?
– both. There are high-risk corporate bond funds that are not so good and then there are those with lower risk tolerant. They have perhaps given 2-3 percent return this year
Bond Funds and balanced funds have attracted Swedish savers during the year, while many fled equity funds.
– The looks a bit different than how it used to be. It has really gone into a lot of money into bond funds, it stands out. And the Swedes were net sellers of equity funds is a bit strange because the stock market in general has been good in recent years, says Fredrik Pettersson, chief analyst at Investment Fund Association.
Have Swedish fund investors made good or bad business?
– It is difficult to say: You could say that unitholders have been too cautious in equity funds in recent years, but there are many who believe that the Stockholm Stock Exchange is overvalued and may go down.
Click through to read about six fund trends from the past year.
No comments:
Post a Comment