Stock markets are setting records – Warning to Finnish investors

A total of EUR 1.4 billion of new capital was invested in investment funds registered in Finland in April.

According to Finanssiala ry, the total capital of Finnish funds grew to 211 billion euros in April.

In particular, new funds flowed into equity funds and bond funds during April. The stock market performed well in April.

Stock prices rose in Europe, the United States and Asia. In addition, many stock exchanges set new records.

Those who invested in bond funds also received reasonable returns in April.

The good results achieved by listed companies at the beginning of the year excited investors. The artificial intelligence boom increased interest in technology companies, especially in the United States.

In April, many Finns moved their money from safer bond funds to US growth stocks.

Finns invested the most new money in April in funds that invest around the world, in North America and the Nordic countries.

Similarly, money was withdrawn from funds investing only in Finland. In fixed income investments, funds investing in developing countries yielded the best.

A word of caution for investors

The Middle East crisis caused concern. The war in Iran and the closure of the Strait of Hormuz, an important shipping route, have increased unrest in the energy market and created fears of a new wave of inflation.

So far, the central banks have kept their key interest rates unchanged, but watched the development of energy prices with concern.

During the past year, equity funds have produced exceptionally well. In April, the average return in many share fund categories was around 20–30 percent.

However, strong revenue development is not a permanent state of being, reminds the leading expert Maria Somerla From Finanssiala ry.

According to Somerla, the investor now has to balance, because the positive technology-driven growth outlook affects price developments, but the instability of the energy market can surprise negatively.

“In investing, the importance of diversification, long-termism and sticking to your own investment plan are emphasized even more,” Somerla sums up in the announcement.

Almost 1.7 million Finns have money tied up in funds, and the typical investment amount is just under 5,000 euros.