According to Nordea's investor barometer, the typical Finnish investor is an ordinary citizen – a white-collar worker or a pensioner. One-third of these investors own an investment portfolio worth less than 50,000 euros and have a household income of less than 50,000 euros. The results of the barometer also undermine the notion that Finnish investors are inherently cautious. More than 80 per cent of respondents owned equities and 70 per cent held fund investments. Almost one-third owned equity investments exclusively.
The investor barometer surveys small investors' investment trends, asking participants which investments attract them and about their approach to risk-taking. Finnish small investors have three goals for investing: saving for a rainy day, accumulating wealth and saving for their retirement.
- Finnish small investors invest directly in equities, investment funds and various investment accounts, even if interest rates are currently low. What comes as a slight surprise is that almost a quarter of respondents own an investment property, says Jari Ohrankämmen, Head of Sales at Nordea Wealth Management.
- Finnish investors are sometimes lacking diversification, for example across geographical regions and different asset classes, in their portfolios and are therefore unknowingly taking a bigger risk than they had originally planned, says Ohrankämmen.
Equity investment environment considered attractive
Almost 90 per cent of respondents considered the investment environment to be attractive for equity investors. 60 per cent of respondents believed that the Helsinki stock exchange's general index would go up over the next six months. Only a quarter of those interviewed saw the fixed income market as attractive.
- This result comes as no surprise, considering the returns investors can currently expect from fixed income investments. It is clearly evident that the equity market's return expectations and the fixed income market's meagre returns are drawing investors towards the former. Those who seek high returns clearly intend on increasing their direct investments in equities. Half of the respondents plan on increasing their investments in Finland, Ohrankämmen says.
- Finnish investors are keen on investing in Finnish companies, which, obviously, is a good thing. But from a risk management point of view, you should not put too many eggs in your domestic basket. We recommend that 25 per cent of your equity investments should be in Finland and the rest diversified internationally, he says.
A total of 1,452 active small investors from among Nordea's customers were interviewed for the barometer, which was conducted as a web survey in Nordea's Netbank in March 2014. The survey's results were analysed by CBI Cannon Business Insight Oy.
For further information, please contact:
Jari Ohrankämmen, Head of Sales at Nordea Wealth Management, tel +358 50 5688945
Anni Kuusisto, Chief Communicator, tel +358 50 4385094