Private Investors Boost Fund Ownership to Record 11% of Assets
Private investors have significantly boosted their fund investments, with over 11 percent of their financial assets now in mutual funds. This shift, driven by various factors, has led to a substantial increase in fund ownership over the past decade.
The proportion of new investments in funds reached 10.7 percent in 2020, a shift from the previous preference for interest-free deposits or insurance, which accounted for 77 percent. Even without any change in the mutual fund share, the growth of financial assets would have added 145 billion euros to fund ownership. Over the past decade, fund ownership has surged by 85 percent, reaching 735 billion euros by the end of 2020, up from 396 billion euros a decade earlier. This upward trend continued into the first quarter of 2021.
The increase in fund ownership can be attributed to several factors. Good fund performance accounted for 39 percent of the growth, while generally higher savings contributed to 54 percent. Additionally, a change in the weighting of new investments played a 6 percent role. Despite these factors, there is no specific data on a particular group of private investors driving this growth.
Mutual funds have become an increasingly popular investment choice for private investors, offering return opportunities in a low-interest environment and protecting against inflation. With over 11 percent of financial assets now in mutual funds, this trend is set to continue, benefiting small investors seeking to grow their wealth.
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