Green seasickness among fund savers in January

– Interest in green funds has never been greater. There’s a lot of buzz right now, and it’s partly based on the fact that sustainability is, of course, a megatrend, but also the fact that we see huge flows of capital coming into these types of businesses. Since advertising tends to attract fortune seekers with a keen interest in obtaining a green label for their business, saving funds is a good alternative for this industry. Then you get help from a manager to separate the chaff from the wheat, says Frida Bratt, a savings economist at Nordnet.

His counterpart at Nordnet, Nicklas Andersson, is on the same path.

– It is a global megatrend that will continue to grow for a long time. However, it should be noted that many individual stocks in renewable energy have recently had a parabolic development. It is often said that we tend to overestimate short-term trends and underestimate them in the long term. Therefore, it is gratifying that private savers choose exposure through their fund savings because it provides a naturally good risk margin in this semi-bubbly terrain. Another interesting detail is that many often favor exposure to the Stockholm Stock Exchange and Swedish funds, but the favorite fund of private renewable energy savers has no Swedish company in its top ten holdings. It provides global diversification in the sector, says Nordnet savings economist Nicklas Andersson.

Avanza’s shopping list is headed by the “Green Energy” category and on Nordnet’s shopping list, Handelsbanken Hållbar Energi fund ranks second.

– The fund was one of the best performers in 2020, and savers will continue to believe in the sector in 2021 as well. Even if there is a lot of capital looking here, it is probably wise not to coldly expect that renewable energy as the sector performs just as well. stronger this year than last year, says Nordnet’s Frida Bratt.

Broad emerging markets are popular buys too.

– If you buy an emerging market fund, you will get China, which is ahead of the recovery, but also other emerging markets that are lagging and likely to have a strong recovery ahead. These markets are also favored by the weakness of the dollar. Chinese tech giants like Alibaba and Tencent make up a significant chunk of emerging market funds, but the fact that political risk in Chinese equities became apparent in January doesn’t scare savers, says Nordnet’s Frida Bratt.