Almost 30% return on stock investments for Finns – A surprising turn in cash flows

The stock investments of Finnish households returned almost 30 percent last year, he says Bank of Finland in its announcement.

Taking dividends and valuation changes into account, household equity investments returned 29.9 percent. The value also rose to an all-time high of 59.0 billion euros. A year earlier, the value of household equity investments was 46.5 billion euros.

At the end of the year, 85 percent of households’ equity investments were in domestic stocks.

Finnish stocks returned 33.6 percent last year, which explains the success of Finnish portfolios. Household investments in shares of foreign companies, on the other hand, yielded 10.1 percent last year.

In the longer term, for example starting in 2019, investments in shares of foreign companies have yielded better than domestic share investments, the release states.

Add money to foreign stocks

The Finns have not shifted their gaze away from abroad – on the contrary. Last year, households increased their investments in foreign stocks and decreased their investments in domestic stocks.

Throughout the year, households invested a net amount of EUR 543 million more in the shares of foreign companies. Households sold a net amount of 299 million euros worth of domestic stocks last year.

All in all, households invested a net amount of EUR 244 million in shares last year, which is significantly less than in previous years, says the Bank of Finland.