July, normally the peak of the summer season in Sweden, still saw strong net sales of funds this year, according to latest data from the Swedish Investment Fund Association.
Net sales through the month his SEK14.5bn (€1.57bn) with bond and balanced funds recording the highest net inflows – SEK7bn of net sales went to bond funds, and SEK4bn to balanced funds.
Equity fund net inflows hit SEk1.8bn and money market funds SEk1.3bn.
The Association said that year-to-date some SEK96bn (€10.45bn) has been invested in funds, taking total net assets to a new high of SEK2.78trn (€302.5bn) across the industry.
Fredrik Pettersson, chief analyst on the Swedish Investment Fund Association, said: “Never before have the interest in fund saving been this high. Fund savers mainly choose funds with lower risk and higher diversification which could be a seen as a reluctant view on the future development of the stock market.”
During the month, the value of the Stockholm Stock Exchange (including dividends) fell about 1%. Historically, patterns of net investments have closely mirrored developments in the local stock market. Equity funds account for some SEK1.5trn of the total assets, and Sweden equity funds account for about a third of this.
Total net assets in the Swedish fund market increased by about SEK30bn (€3.3bn) in July.
Net sales of investment funds in 2014, SEK billion
(Source: Swedish Investment Fund Association)