Regular fund savings grow across Norway
The number of contracts signed between retail savers and financial services providers to invest regularly into funds increased by some 25,000 over the past year, according to a survey from the Norwegian Fund and Asset Management Association (VFF).
It said that last year’s number came on top of some 60,000 new regular savings contracts signed the year before; total regular investments into equity and balanced funds through this method of savings is now NOK717m (€76m) monthly.
Typically involving retail customers who also have bank accounts, the contracts may start from as little as NOK100 (€10.5) per month, which is automatically transferred to an account that is used to acquire fund shares. SpareBank 1, for example, allows customers who have signed up to use this method of saving enables them to change the regular sum via mobile and internet banking.
By averaging out the purchase sums and engaging in regular investments, investors can reduce the problem of timing the market wrong.
Some 800,000 Norwegians, out of a UN estimated population of 5.3 million, have signed up for regular savings this way, investing an average of NOK896 (€94.7) per month, which is a gain of some NOK16 on the previous year, VFF said. People aged 40-59 account for the largest share of such savings. The data also suggests that men on average save 74% more than women via this savings regime.