Sweden’s net fund figures suggest growing concern over interest rates

Latest net sales figures from the Swedish Investment Fund Association come with a warning from the organisation’s chief analyst Fredrik Pettersson that investors are increasingly concerned about the risk of rising interest rates.

Investors put SEK9.7bn into equity funds on a net basis, but withdrew SEK6.1bn from bond funds over the month of January, the Association’s figures show.

Pettersson said: “In January relatively large withdrawals were made from bond funds, which can be interpreted as a concern of higher interest rates in the future.”

“The interest in equity funds as we saw in December continued in January. The appreciation of the Stockholm Stock exchange is likely to have affected the net savings. However, we would like to remind that savings in equity funds should always be viewed in the long term.”

Total fund assets in Sweden increased in January by SEK66bn, hitting SEK2.1trn by the end of the month. Of the total some SEK1.15trn was invested in equity funds.




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