Meanwhile, the popular funds still unreasonably high fees, consider the Morningstar analysis manager Jonas Lindmark.
The fund charges in Sweden fell last year to the lowest level since 2005, according to the AMF that looked back ten years in time. The average annual fee for an equity fund stood at 1.71 per cent of the savings amount, while the clean management fee average was 1.43 percent.
But when the AMF makes an equity weighting, thus taking into account how much money Funds manages , lands the average management fee for Swedish-registered equity funds at 0.89 percent. We then put more money into cheaper funds.
AMF pointing to the increasing number and acclaimed index funds as an explanation for the price pressure. Such is just the market, which does not require as much expensive work without leading to low or no fees for the saver.
Even among funds have become cheaper, but the decrease is small and fees have risen steadily until last year. Very new savings goes to balanced funds, which invest in a mix of stocks and bonds – a convenient solution for many who are not so active savers.
– Then it’s worrying that precisely those charges have risen so much that they are almost as high as for equity funds, says Jonas Lindmark.
– A little one can think that it is linked, high fees makes the funds attractive to the sellers who can earn a lot of commissions.
A balanced fund is handled often by fund-of-funds principle, therefore, invests in a variety of other mutual funds. The category continues to be relatively expensive, according to the AMF, with an annual average fee of 1.81 percent.
– Balanced funds average might have been half-interest investments, and with today’s low interest rates, it is completely unreasonable, says Lindmarker.
As usual, the larger amounts and longer investment horizon, the more important contribution.
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