Emerging markets and tech funds attract savers in February

Most of February was characterized by a high appetite for risk and money savers have moved to the emerging markets of the US and Asia, according to Nordnet states.

– In a broad pool of emerging markets, you find China, which is ahead of recovery, and other emerging markets that are lagging and hopefully have a strong recovery ahead, says Frida Bratt, savings economist at Nordnet.

Avanza notes that interest in technology funds continues. According to the online bank, the rapid decline in tech funds in late February prompted many private savers to replenish their holdings, with one in three crowns of funds going to tech funds during the month.

“Big digital change”

– The concern we’ve seen for highly valued growth stocks in general and various tech companies in particular is reminiscent of 2018. What then began as a rotation from the tech to healthcare sector caused a real chill, while the rate of Long-term interest went 3 percent, that is, significantly higher than we were today, ”says Avanza savings economist Nicklas Andersson.

– A major difference between then and now is the great digital shift we saw last year. In the short term, volatility is a risk, but in the longer term opportunities are created. If you want to invest long-term in the type of company that offers both structural growth and high valuations, it’s okay to turn fluctuations in your favor. That is exactly what private savers have done, continues Nicklas Andersson.

However, interest in funds with a focus on renewable energy, which has dominated the buying wave in recent months, no longer appears to be as intense, according to Nordnet.

“Wise to be humble”

– We have a nice rally in green funds behind us, and it’s probably wise to be humble and not expect a similar ride this year as in 2020, says Frida Bratt.

“Investors in growth companies, in particular, are concerned that the US interest rate has gone up a lot in a short time, nor that rising interest rates is good news for bond funds in the US. Overall, and even if we don’t have rapidly rising interest rates before us, savers have this interest rate risk in mind, ”emphasizes Frida Bratt.

Corporate bonds, which were also sold, have initially been unpopular since last spring, when the closure of several corporate bond funds took savers’ confidence in them to take a real hit, he says.

The most widely bought funds in February on Nordnet were Spiltan Aktiefond Investmentbolag, Länsförsäkringar Global Indexnära and Swedbank Robur Ny Teknik.

The top-selling funds on Nordnet in February were Vontobel Global Equity, Spiltan Högräntefond and Länsförsäkringar Fastighetsfond.

Tables: The first table below shows the categories of funds most bought and sold in February by private clients in Avanza. The table below shows which specific funds Nordnet’s private savers bought and sold in February. Source: respective online bank, 2/25 -21.