Everyone knows that by saving and preferably also investing you can get more money in the future. In addition to that detail, however, the knowledge of savings and investment is relatively low among us Swedes, at least if we are to believe a new survey signed by Silo on behalf of the niche bank Porex. The results of the survey actually paint a rather bleak picture of the state of knowledge. In addition, the commitment to taking responsibility for its future economy seems relatively small.
Billions on savings accounts
The most common form of savings in Sweden is the savings banks’ savings accounts. It is a purely lousy business to place money on these. The accounts give no interest and in practice, the value of the portfolio decreases for each day due to inflation.
Seven out of ten respondents in the Silos / Porex survey have money on traditional savings accounts. About half of these have money invested in interest-bearing accounts. James Friedelberg, head of communications at Porex Bank, comments that there seems to be a low level of knowledge and also a low level of engagement among bank customers. He also states that a private person who deposits money into a savings account actually lends money to the bank and thus ensures that they receive interest.
Experienced lack of knowledge
The lack of knowledge and commitment regarding savings and investment issues is also shown in the asset manager Blackrock’s latest Investor Pulse report. This report, which presents, among other things, trends in private individuals’ investments in different countries, shows that 40% of Swedes feel that they have the confidence to make financial decisions. The last time this parameter was presented, the proportion was 47%. This is a significant reduction.
70 percent do not want to invest
According to Blackrock’s analysis, as many as seven out of ten Swedes do not want to make investments in funds, shares or other securities for the reason that they do not feel comfortable with the task. According to Jonard Willson from the Swedish asset manager’s Swedish team, an perceived lack of knowledge, together with a concern about stock market fluctuations, are the main reasons for caution.
Blackrock has also investigated what could make them cautious about changing attitudes to investments and thus dare to look at alternatives to savings accounts. A success factor seems to be clearer information on risks in relation to returns. Another thing that can encourage increased investment may be that customers receive some kind of guarantee on the capital invested.
Sweden is still the best in Europe
Despite the above-mentioned figures, which individuals may see as less positive, Sweden is actually one of the leading countries in Europe when it comes to investments in equities and funds. The early investment in Allemansfonds is probably an important reason for this. In Sweden, long-term savings have been a type of investment that has been open to everyone. In other countries, the economic systems have not been as democratic.
Another reason why we Swedes in comparison with other countries in Europe are diligent investors may be that we were early trading in equities and mutual funds online. Players like Avanza and Nordnet have been around since the late 1990s.
Another reason is Telia. In 2000, Telia was listed on the stock exchange and launched as a “folk share”. Many thousands of Swedes, who had not previously owned shares or funds, became investors overnight.