Sharp rise in younger fund investors in Norway
There has been a sharp increase in the use of funds for long term savings purposes by younger Norwegians in the 18-30 age group, data from the Norwegian Fund and Asset Management Association (VFF) suggest.
The figures point to a 7% rise in the number of investors in this age group on the same time last year. However, because of a historic under-representation of this age group in the market, the increase means that there is balance betweeen different age groups rather than a sharp tilt to an overweight of younger investors.
Overall, a third of Norwegians are using equity funds for their personal investments.Of these some 24% have invested betweeen NOK10,000-50,000, while 21% have invested betweeen NOK100,000-500,000 (€10,666-53,330). More men than women are invsted in equity funds.
Some 52% of fund investors are using monthly savings agreements – a type of regular savings contract signed between retail investors and financial institutions – while the data shows that the share of investors who are saving an average of betweeen NOK1,000-2,000 monthly has gone up relative to the proportion saving between NOK2,000-5,000.
Other trends noted by the data include the increasing use of equity funds over the past decade. Some 45% of the investors covered by the data have been using equity funds for 10 years or more. This is a doubling since the research was first done in 2006, VFF said.
It added that the finding suggests investors have recognised that equity based investing should be done with an eye to the long term.
However, the data also suggests that Norwegians on average still require more knowledge about how to best use funds for long term savings purposes. For example, 63% of investors surveyed said they did not know whether the fund performance data they have access to shows returns net of management fees or not. VFF said this pointed to a continued need for more information to be provided about using securities funds.