Data published by the Norwegian Fund and Asset Management Association (VFF) suggests that there was a strong rise in the number of savings contracts or ‘agreements’ signed between Norwegian retail investors and local institutions during the first half of the year.
Some 50,000 additional contracts were agreed, with a focus on saving in securities funds. In total Norwegians have some 760,000 such contracts in place, VFF said, which tends to result in a fixed monthly sum being invested in equity or balanced funds.
The increase in the number of contracts comes as data also suggests an increase in the average sum saved: from some NOK799 to NOK866 (€85.6 to €92.8) between the start of 2014 to June 2015.
VFF chief exeuctive Bernt Zakariassen (pictured) said such regular savigns were benefitting Norwegian savers.
“With a monthly savings contract you spread the investments in the equity market over time, and that way the risks are lower than if you try to find the ‘right’ time points. A savings contract will probably also give you a higher average return than if you try to bet wither the stock market will go up or down in the short term.”
Men are still saving more through the contracts than women. The have both more contracts and on average save more per month than women, the data suggests. Currently men account for some 64% of this part of the Norwegian financial services market. The age group 40-59 account for the greatest number of contracts.