Due to low interest rates and higher inflation, savers have turned to other investments in 2021. Many people have invested their money in mutual funds.
According to the BVI fund association, many savers in Germany are discovering securities investments for themselves in times of low interest rates and increased inflation.
“2021 was an exceptional year,” said BVI President Alexander Schindler on Thursday in Frankfurt. “The fund companies manage record assets with 4,334 billion euros and funds achieved their best sales year with new business of 256 billion euros.” Not only professional investors such as insurance companies contributed to this, but also private investors.
Schindler reports that more and more savers are also investing in mutual funds. According to his assessment, inflation, which has risen to 3.1 percent on average over the year, and negative interest rates, which more and more banks are charging their customers from a certain sum on the call money or current account, play a role.
Public funds, which are aimed at broader groups of investors, collected significantly more new money last year at EUR 118 billion than a year earlier (EUR 43 billion). Since 2019, mutual funds have more than doubled their inflows per calendar year. Private investors in particular contributed to this, Schindler reported. In 2021, equity funds again led the list of retail funds with new business of EUR 50 billion.
At the end of last year, the assets of mutual funds amounted to a record EUR 1,471 billion (previous year: EUR 1,180 billion). Almost two-thirds of the total assets under management of 4,334 billion euros were accounted for by purely institutional business, for example with insurance companies and pension schemes.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
