Funds for savers
Funds for savers are the right choice for you if you feel that following the markets and investments is too time-consuming or laborious. Among these funds, both beginners and more experienced investors will find suitable alternatives.
The funds for savers include a variety of funds from which you can choose an option that suits your investment horizon and risk tolerance. The fund with the lowest risk invests solely in fixed income markets, whereas the one with the highest risk invests in equity markets. The other four funds invest in both fixed income and equity markets. The portfolio manager manages each fund's assets in accordance with its investment policy and reacts to changes in the markets and the investments' future outlook.
- The portfolio manager actively monitors the market and executes trades as the market situation changes.
- The portfolio manager makes sure that the expected return and the suitable risk level are maintained.
- You can buy and sell fund units at any time.
The funds for savers are managed by Nordea Funds Ltd.
Portfolio manager monitors the market on your behalf
When investing, it is essential that you spread your savings over fixed income and equity markets. This has been taken into consideration in the funds for savers, as each fund's assets are spread over different investments in accordance with its risk and return profile.
Funds for savers are funds of funds investing in Nordea's other funds. Through the funds for savers the investor can get access to Nordea's entire range of funds at a low cost.
The six funds for savers all have clearly differing risk profiles, return targets and investment policies. Choose the suitable fund based on your targets.
In the long term, market conditions will change. The funds' portfolio managers will consider on your behalf when is the best time to switch from one fixed income asset class to another or, when talking about equity investments, from one sector or continent to another.
- Savings Fixed Income: fund investing in bonds
- Savings 10: balanced fund focusing on fixed income instruments
- Savings 25: balanced fund focusing on fixed income instruments
- Savings 50: balanced fund
- Savings 75: balanced fund focusing on equities
- Equity Portfolio: widely diversified equity fund
The funds for savers are managed by Nordea Funds Ltd.
Return and risk
The return on a fund is based on the value appreciation and return of the fund's investments.
The biggest advantage funds have is that they are well-diversified, which means that when one asset class, region or sector is performing poorly, another may be enjoying great success.
Savings Fixed Income is a fixed income fund
The yield on fixed income funds is based on the performance of the fixed income market, which is more stable than that of the equity market. The flip side of stability is a lower yield. The yield paid on fixed income funds is dependent on the interest rate level and its fluctuations, the selected investments and the timing of buys and sells.
In fixed income funds the main risks consist of the interest rate risk and the credit risk. All investments in fixed income funds are exposed to the risk of a rise in interest rates during the investment period. If market interest rates rise and the investor sells his or her fund units, the yield may be lower than expected, or even negative. This is due to the fact that, as interest rates rise, the market value of bonds or money market investments in the fund's portfolio declines, lowering the value of each fund unit.
The credit risk means that investments in bonds are exposed to uncertainty regarding the issuer's solvency.
Savings 10, 25, 50 and 75 are balanced funds
The risks involved in a balanced fund are influenced by the distribution of their investments among fixed income and equity investments, the interest rate and credit risk of the fixed income investments and the equity market risk of the equity investments.
Balanced funds are exposed to higher risks than fixed income funds since a part of the funds' assets is invested in equities, and lower risks than in equity funds because fixed income investments bring stability.
The risk level is determined by the proportion of equities in the balanced fund. For example, only 25% of the Savings 25 Fund's assets are invested in equity markets, so its risk exposure is lower than in the Savings 75 Fund, which invests 75% of its assets in equities.
Equity Portfolio is an equity fund
The value of equity fund units tracks the performance of the equity markets.
A rise or fall in the prices of equities impacts the value of fund units. The risk, however, is reduced by the diversification of the investments over several different assets. The risk level is therefore lower than with investments in individual equities. The risk involved in the funds for savers is lower because they are funds of funds, which means a single investment in these funds gives you diversification over hundreds of investment alternatives in the best of cases.
Investments made outside the eurozone are also exposed to an exchange rate risk.
The value of fund units may increase or decrease depending on the market situation. The investor may lose a part or all of the invested capital.
A subscription fee is charged on a subscription (purchase) for fund units and a redemption fee on a redemption (sale) of fund units. You can subscribe for fund units for a reduced fee via Netbank.
Each fund pays the fund management company a management fee, which covers such fund management costs as value calculation, accounting and reporting.
The amount of the management fee is given as an annual fee. The management fee is deducted in the calculation of the daily net asset value per fund unit, and is thus not charged separately. The fee includes a custody fee for fund units.
No subscription fees will be charged from Nordea's Key and Check-in Customers who save regularly in Nordea funds in accordance with a fund savings agreement concluded at a branch or via Netbank. Preferred Customers receive a 50% discount on subscription fees.
You can view the fees for each fund in the Funds Now service.
Rules and brochures
Read each fund's investment policy, risks and costs in the key investor information document, rules and official prospectus before making your investment decision.
Advice for saving in funds
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