Savers aged 35 to 44 have 50 percent of their capital in passively managed equity funds, such as index funds. For people over 64, the corresponding share is around 20 percent, according to FI's figures.
The difference between generations is also clear in the funds' fees. In the 35–44-year-old group, the average fee is 0.6 percent, while those over 64 pay around 1.1 percent.
One reason may be that younger people are more used to digital platforms. They are less likely to go to a major bank and be steered toward the bank's own funds, which are often more expensive, without choosing their own investments, says Moa Langemark at FI.
Choosing mutual funds
While many younger people jumped on the ISK trend during the pandemic, many older people have retained their holdings in mutual fund accounts, where sales involve capital gains tax.
Older people also have their savings in mixed funds to a greater extent, which have lower risk but cost more, according to Langemark.
I think it's important to be aware that one's savings horizon may not end at retirement. Many could remain with a high exposure to the stock market for longer. It is important to weigh this against the higher fees that are often found in mixed funds.
Minimum fee level
In parallel, FI's latest compilation shows that some funds have become slightly cheaper during the first quarter of the year. The median fee for passive global funds has dropped to 0.35 percent from 0.40 percent, and for actively managed global funds to 1.25 percent from 1.30 percent. For Swedish funds, the median fee remains at 0.20 percent for index funds and 1.30 percent for actively managed funds.
Langemark says that "even the smallest percentage" in fees makes a difference in long-term savings.
Therefore, it is important to be cost-conscious. If you choose an actively managed fund with a higher fee, you will need to be more active in monitoring and evaluating the fund. If you want to make it easy for yourself, choose cheap, simple funds.
Percentage of passive equity funds based on age:
18–24: about 30 percent
25–34: about 45 percent
35–44: about 50 percent
45–54: approximately 35 percent
55–64: approximately 30 percent
64+: about 20 percent
Average fee for equity funds:
18–24: 0.9 percent
25–34: 0.65 percent
35–44: 0.6 percent
45–54: 0.8 percent
55–64: 0.95 percent
64+: 1.1 percent
Source: Financial Supervisory Authority
