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Swedes turned to risky funds in June

In June, new savings in Swedish funds amounted to SEK 11.9bn with investors allocating into risky assets. 

Gustav Sjöholm, savings economist at Fondbolagens förening. | Photo: Swedish Investment Fund Association/PR

In June, a total of SEK 11.9bn was invested into funds in Sweden.

Fixed income funds saw a net inflow of SEK 5.9bn of which the lion's share went into corporate bond funds.

Equity funds also had net deposits of SEK 3.5bn. On the other hand, net withdrawals made during the month from short-duration fixed income funds and hedge funds amounted to 0.8bn and 0.9bn, respectively, while mixed funds sat at 0.3bn.  

In total during the first half of 2020, funds recorded a net outflow of SEK 46.5bn.

"An extremely turbulent half-year ended with a very strong second quarter. The rapid and strong recovery in the world's stock markets once again shows the importance of long-term perspective and the value of regular monthly savings," says Gustav Sjöholm, savings economist at Fondbolagens förening.

Also in June, the trend in most of the world's stock markets was positive and the value of the Stockholm Stock Exchange rose by about 2.5 percent (including dividends) during the month. Equity funds showed a total net inflow of SEK 3.5 billion. The largest net deposits were made in emerging market funds and global funds, while Swedish funds had net withdrawals.

So far this year, equity funds have recorded a net outflow of SEK 30bn. Swedish funds have a total net withdrawal of almost SEK 20bn so far in 2020, while sectoral funds have had net deposits of nearly SEK 10 billion.   

In June, long-term fixed income funds had a net inflow totaling SEK 9.6bn, of which SEK 5.2bn were net deposits in corporate bond funds.

So far this year, a net outflow from long-duration fixed income funds totaling SEK 7.5bn is noted. During the year, corporate bond funds showed net withdrawals of SEK 9.4bn. 

Total fund assets in Sweden increased during June by SEK 78bn and amounted to SEK 4,776bn at the end of the month. Of the total fund assets, SEK 2,873bn (corresponding to 60 per cent) were invested in equity funds.

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