Net outflows from investment funds in Sweden hit SEK7.2bn through February, led by heavy sales of equity funds, while investors instead bought bond funds, according to data published by the Swedish Investment Fund Association.
Some SEK15.8bn exited equity funds, with SEK1.9bn being withdrawn from balanced funds. Fixed income attracted SEK6.7bn on a net basis, with short term fixed income funds attracting SEK3.4bn. Hedfe funds attracted SEK200m on a net basis through the month.
Gustav Sjöholm, savings economist, said: "During the Coronavirus uncertainty in February, active fund investors sought out fixed income and global equity funds. For the long term investor it is important to hold more than one thought in one's head at the saem time. On the one hand it is hard when investments are losing value. On the other, it is not now that the money should be used. Important success factors in long term investing are monthly savings and not making hasty decisions."
The fear on global stock markets saw the Stockholm exchange shed 6.6%, including dividends. There were significant withdrawals from Sweden equity funds.
The closest similar months in terms of withdrawals from equity funds include August 2019, with SEK9.5bn withdrawn, and October 2018, with SEK21.4bn withdrawn.
Total assets of investment funds in Sweden fell SEK303bn, to end the month at SEK4.856trn, of which about 60% were in equity funds.