Mutual Fund and Share Ownership in Finland: Trends and Patterns in 2004-2016

Research output: Contribution to journalArticleScientificpeer-review

Abstract

27% of Finnish individuals hold stocks or mutual funds in 2016. This participation has increased from 21% in 2004 mostly due to new investors entering the market through mutual funds. In 2016, the mean individual portfolio equals 35,149 EUR and includes 1.7 stocks and 1.5 mutual funds. The participation rate, the portfolio value, and the number of securities are higher when
aggregated at the household level. Balanced mutual funds comprise 40% of the average individual portfolio, followed by direct equity holdings at 32%. Wealthy, male, Swedish-speaking,
urban, university and business educated, and high-IQ investors hold a higher portfolio share in equities. Differences in portfolio composition generate large differences from the average
9% annual investor realized return. The wealthiest 1% of the population own 62% of financial assets in 2016. The concentration of wealth has remained similar compared to 2004, except for
the top 0.01% whose wealth share has decreased.
Original languageEnglish
JournalNordic Journal of Business
Volume70
Issue number4
Publication statusPublished - 2022
MoE publication typeA1 Journal article-refereed

Keywords

  • Stock
  • mutual fund
  • stock market participation
  • wealth inequality

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