What different funds are out there and what’s worth buying? I currently only own Nordnet’s Super Fund (Superrahasto), but I’d like to know how other funds work and if it’s worth keeping an eye on them or even buying them? For example, I’ve heard of funds from Titanium, Evli, Taaleri, and Elite. How do all of these differ from each other and in what situations is it worth buying them? I have a rough idea that funds other than the Super Fund have high fees, but they are still good products—surely there must be some logic behind them, otherwise how would they even exist on the market? Or are these funds just a big scam for grandmas and grandpas? Help me out and teach me!
A fund is a good option if you don’t have enough time or energy to research investments and investment targets. You get a ready-made diversified portfolio and allocation. Funds differ in their investment styles, geographical areas, risk profiles, etc., so you can choose one that suits your own profile. All of this, of course, costs a percentage or a tenth of a percentage of your invested assets each year, even if there is no return.
ETFs are lower-cost index investments, but they lack allocation. So you have to decide yourself what proportion of your assets you want to put into them in different market situations. The good (or bad, depending on interpretation) thing about index investing is that an index fluctuates much less than the shares of many individual companies.
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Old thread, not many messages. Let’s get it going again.
I’m looking for tips on how many funds an retirement portfolio should consist of? The goal is a portfolio consisting solely of funds. I’m looking for stable, steady returns rather than high-risk funds.
Over the next few years, stock and other assets will be transferred into these funds, and then the necessary living expenses will be withdrawn from them during the upcoming retirement years.
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I have similar thoughts and I’m trying to allocate more and more to funds. However, about 80% is still in direct stocks. Regular savings go to funds. Currently, I use three index funds:
Handelsbanken USA Index
SPP Emerging Markets SRI A
Spiltan Aktiefond Investmentbolag
In addition to these indexes, I’m also looking for a more active fund, if I can find a suitable one. Like the previous writer, I’ve also been thinking about a suitable amount; somehow I feel like I should add a couple more. I’ve also had ETF funds, but currently I don’t. ETF transaction costs bother me, even though acquisitions can be made smaller with a monthly contract. However, if one considers a model where one regularly withdraws from them at some point, then an ETF is too expensive due to costs. Besides, a monthly savings contract doesn’t work if you use Nordnet’s Super Loan. I want to keep this loan as an option for necessary situations.
This allocation needs to be done gradually to achieve temporal diversification. If I add a couple more, I need to check that there’s no unnecessary overlap. You can also take a view with funds, but then you almost have to turn to an active one.
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I have the same plan. Investment/savings period of +15 years, and I will concentrate most of my money into index funds, but I’ll also buy active funds, like technology funds. So, I’m building up my pension fund. Of course, some ETFs and stocks too.
I also came across this. Does anyone else have experience with it?
“The HSBC GIF Economic Scale Index Global Equity fund will close on April 15, 2021. Trading in the fund has ended. Your fund units will be sold automatically, and the proceeds will be credited to your portfolio.” (Nordnet)
Two weeks have passed, and the money hasn’t appeared. Nordnet didn’t comment on when the money would be returned.
(edit: It took four weeks for the money to be returned.)
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The topic doesn’t seem to generate much discussion, but let’s continue anyway. What do you think of the following portfolio:
- SPP Global, global fund.
- Investor AB, Swedish investment company.
- STAG, industrial REIT.
- Lyxor New Energy ETF.
I’ve been thinking about whether I should add something else to it. I invest in these regularly, and I think they offer good variety and diversification.
I would leave out theme funds and investors. Something alongside Reit SPP Global is totally fine.
Personally, I would look for more diversification from different factors, e.g., SVC/value/momentum.
Could you tell me why you think Investor AB is not suitable for long-term investing? It has a veeery long history of beating the index, and its share price curve is admirable over a shorter period, or even over 100 years. In addition, it pays stable dividends.
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Yes, it’s suitable if you’re interested in dividends. It would be the cornerstone of my dividend portfolio if I had one.
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I am currently investing my largest assets in Evli Small Caps B and Handelsbanken Sustainable Energy funds. For me, this is a suitable amount of diversification at the beginning of a long horizon. I also have index USA and Europe in my portfolio, but I’m not fully focusing on them yet.
Index investing became my thing. A suitable tactic for me. I also keep a daily log of the index’s income level in Excel.
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If you’re more interested in index investing, I recommend checking out the Rational Reminder podcast, the forum of the same name, and Ben Felix’s YouTube channel.
When you read and listen to those things, it feels like sitting at a coffee table with the world’s most successful investors and Nobel laureates in economics =)
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Can you have too many funds? 
My strategy is to invest 30% of my monthly savings into SPP Global, 10% into Handelsbanken USA Index, and 10% into SPP Emerging Markets. The other 50% goes into small-cap funds (mainly Finland and Nordics) and trend funds that have beaten the index in the last 3-10 years and in which I have strong future confidence. These have accumulated a f*ckload, something like 20. And what about when several funds have a lot of criticized overlaps, but they are good companies in my opinion and clearly also in the opinion of active fund managers, and in principle, I don’t mind at all that I have them in several of my own funds, so more money goes into them. Does this sound like a completely idiotic mess?
In my opinion, yes. There’s a lot of overlap in holdings and costs. Definitely not optimal. Even though there can be thousands of funds and stocks, the weight of a single stock in the overall portfolio can be very large. The idea of investing in funds, in my opinion, is precisely simplicity and minimizing costs.
Okay, thanks for the answer. I’ve personally tried to get a little extra return and interest from the trendy small-cap sector, specifically to complement the steady grind of global Europe-USA index funds, and that has worked pretty well for the last couple of years. Since I don’t have enough interest in delving into individual stocks, I’ve tried to spot interesting funds instead, and yeah, I admit it’s gotten out of hand. I guess I’ll have to start trimming down this “collection” a bit.
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Well, you can take as many as you like, according to your own taste. I also have a “core” made up of indexes, in addition to active investments in small companies and different sectors. Over a 3-year period, the global index has been beaten hands down. In my opinion, it doesn’t matter if some of the stocks overlap.
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With SPP Global, you can get the whole world. If you want a US or emerging markets focus, then those funds are separate. So, in principle, you can manage with just SPP Global. In addition to that, small-cap funds if you want a little extra.
I prefer actively managed funds over trying to trade direct stocks myself, especially if you don’t have the motivation to properly research the matter. Instead, I would focus on finding the best possible fund. You can do that thoroughly once and then compare it to other funds in the same sector, for example, once a year.
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It easily increases the weight of one company in the portfolio without noticing. You can find this out well if you bother to calculate the portfolio’s ENC score. And at the same time, you have to pay more for portfolio management fees.
Yeah, I get your point, but if you consider a combo of index funds + active small-cap funds, it’s hard to see a single company taking a lion’s share of the portfolio. Secondly, those active funds that add extra spice are specifically chosen for their perspective, so wouldn’t it make sense to take that perspective?
@kylmajuoma writes that there are 20 funds. As much as one would want to take a view, in my opinion that is really quite a lot. If one considers simplicity and minimizing costs, in other words maximizing returns, then imho one could put 50% in SPP Global and 50% perhaps in 3-5 small-cap funds.
During the winter, I listened to a good podcast that talked about the importance of choosing an actively managed fund and with what methods to choose the best one. I’ll link it here if I happen to remember what it was.
E: here https://youtu.be/vW7MQevj60U
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Because Investor is not cheap when looking at NAV. The GAV management fee percentage is low, but how much do Investor’s companies pay in dividend taxes on average before the money reaches Investor’s account? The third problem is how to analyze such a complex company?
That said, my largest position is an Investor-like investment company. However, I cannot recommend it to anyone. If you, of course, want to invest in this type of company, then in my opinion, the best option is still Berkshire.
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