Saving in mutual funds is almost a folk sport in Sweden. More than seven out of ten Swedes save in funds and almost half see funds as the best form of savings.
But those who save in funds often pay a percentage amount to the person who manages the fund. The fee for index funds, which follow an average of the exchange’s companies, often has a lower fee. Funds that are, on the other hand, actively managed, which means that there are fund managers who decide how the fund will invest, often have the most expensive fees.
Avoiding that fee by buying shares yourself is a better savings strategy, according to Björn “Nalle” Wahlroos, who, among other things, has been described as one of Scandinavia’s most powerful business leaders.
– Why should you pay 1 percent or 2 percent to a manager?, says Wahlroos i Economic Agency.
“Could be more careful”
But according to Johanna Norberg, CEO of Danske Bank in Sweden, the actively managed funds can be better, at least in certain situations.
– The managed funds can select out companies with a higher risk, which means that you can be more careful. But they cost more because it is de facto someone who manages, she says.
Another advantage of the managed funds is that they can have a clearer profile, for example a focus on sustainability, according to Johanna Norberg.