Global equity funds proved to be the most popular asset class for Swedish savers last year, with net inflows of SEK 77bn, according to a report by AMF.

The seventeenth annual AMF Fund Fee Report found global funds accounted for almost 80 per cent of net inflows into equity funds. In total, inflows increased by around SEK 100bn, with global funds accounting for SEK 77bn.

The total value of Swedish fund assets increased by 14 per cent in 2023 – equivalent to SEK 860bn – and is back at the same record-high levels seen in 2021. The report found that this is largely due to the growth in market values, but savings also increased more than before. In total, Swedes save just over SEK 7,000bn in funds.

Furthermore, its report found that fees decreased overall, but there was significant variation across fund categories. The average fund fee for an actively managed global fund was 1.45 per cent.

Commenting, AMF Fonder business manager, Per Wiklund, said: “The long-term trend of declining fees appears to be continuing. This trend is most evident in the most popular category of equity funds.

“Over the past 10 years, the average fee for equity funds has fallen by around 0.3 percentage points. The reason is both an increase in the number of index funds in the selection and that the more expensive funds have been replaced by cheaper ones.”

Wiklund added that the trend towards lower fees and Swedes choosing funds with low fees is “welcome and positive”.

“If two funds are expected to give similar returns, the fee can make a big difference, especially if you save over time, so it is very important to compare different options when saving. If you have a really long savings horizon, a low fund fee can add hundreds of thousands of kronor to your wallet," he concluded.

---