General facts about fund saving in Sweden

Fund-based savings are by far the most popular savings format in Sweden. The percentage of people saving in funds over or above their fund-based premium pension savings has increased to 82 per cent in 2010 from 74 per cent in 2008. If premium pensions are included, 99 per cent of Swedes save in funds.

Swedes also regard saving in funds as by far the best method of saving in the long-term. 48 per cent regard funds as the best savings format, while 22 per cent prefer shares. Funds predominate even more when it comes to savings for children, with two thirds of Swedes regarding funds as the best option for this kind of saving. The main reasons why people save in funds are for their pension and as a financial buffer.

Approximately half of all Swedes have received advice on funds in the last two years, and they rate the quality of the advice they received as verging on excellent. One third are willing to pay for independent advice.

How we save

  • The percentage who save directly in funds – with no pension or insurance links – has risen from 45 per cent to 54 per cent of all adults over the last two years.
  • 37 per cent state that they save in deductible private unit-linked funds or IPS (Individual Pension Saving).
  • Fund-based saving for occupational pensions has become increasingly common – the percentage has increased from 45 per cent to 52 per cent.
  • 17 per cent save in endowment insurance.
  • Almost 25 per cent would prefer to pay an annual tax on the value of their private fund savings rather than paying capital gains tax when switching funds.
  • Equity funds are by far the most common type of fund. 58 per cent of people have savings in this type of fund, making it three times as common as mixed funds, which are the second most common type.
  • 60 per cent would conceivably agree to take a higher risk in return for a better yield.
  • Most people – 74 per cent – save regularly in funds privately by making an autogiro payment every month.
  • Just over one tenth of savers have less than SEK 25,000 saved in funds, while almost twice that number have over SEK 250,000.
  • A majority of savers are unaware that management fees have already been deducted when a fund’s value is reported.

Men and women

  • Fund-based saving is more or less equally common amongst both sexes: 80 per cent of women and 83 per cent of men.
  • Men are, on average, more willing to take risks and tend to be more active fund savers than women. Women’s willingness to take risks in return for a higher yield has, however, increased. Men have more types of fund, primarily equity funds, and the amounts they deposit via monthly transfers are higher.
  • Men have more fund capital and review their occupational pension funds more regularly. They do not feel as great a need to complement their pension savings as do women.
  • Men are more likely to regard fund-based saving as easy than women

What fund savers think of the fund sector

The investment fund sector as a whole has a good reputation amongst savers, and confidence in the industry has even increased slightly since the 2008 Prospera survey.

Fund management companies are generally thought to treat their customers well and to have extensive experience. Investors’ skill, fund management companies’ accessibility, online services and the range of funds with different risk levels offered are also rated highly, as is the professionalism of the companies’ conduct.

The characteristics ranked highest when it comes to choosing a fund management company are that they treat their customers well and that their conduct inspires confidence, that their investors are skilful and base their decisions on sound analysis, and that the fees offer value for money.

About the survey

The survey was commissioned by the Swedish Investment Fund Association and conducted by TNS Sifo Prospera during February and March 2010. The random selection comprised 1,501 interviews with private persons aged between 18 and 74. The Association maps the industry in this way biennially.

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