Households sold equity funds during the first quarter for nearly SEK 5 billion more than they bought. Even though net savings were negative the strong development of the stock market increases wealth in Swedish mutual funds owned by households.
At the end of the first quarter of 2007 total fund wealth for all sectors including households, enterprises and foreign owners amounted to SEK 1,429 billion. This is an increase of SEK 60 billion compared to the end of the fourth quarter 2006.
Financial enterprises bought funds during the quarter for SEK 6 billion more than they sold for.
Households wealth in funds increased
Fund wealth that is directly owned by households amounted to SEK 451 billion at the end of the first quarter, an increase of SEK 16 billion since the fourth quarter. Households also own funds indirectly via unit-linked savings in life insurance companies (SEK 353 billion) and ownership via the premium pension system (SEK 252 billion).
During the first quarter households sold funds for nearly SEK 5 billion more than they purchased. Because of the fall in the stock market in late February people sold equity funds even though the market recovered and rose for the quarter as a whole.
A rising stock market increased wealth in equity funds
Wealth in equity funds for all sectors increased during the first quarter by SEK 40 billion even though net savings were negative by SEK 4 billion. The main reason for the wealth increase is the rising stock market. The Swedish stock market rose by about 6 percent during the quarter despite some turbulence in late February and early March.