- Hans Weber
- November 1, 2024
Czechs See Surge in Mutual Fund Investments: Assets Reach 938.6 Billion Crowns
In a testament to burgeoning investor confidence and market participation, Czechs witnessed a remarkable surge in wealth invested in mutual funds throughout 2023. Representatives from the Association for the Capital Market (AKAT) revealed that the volume of assets parked in these funds surged by an impressive 187.1 billion crowns, reaching a staggering 938.6 billion crowns. This substantial increase marks a notable uptick compared to the preceding year, which saw assets in the funds grow by 44 billion crowns, totaling 751.5 billion crowns.
Jana Brodani, Executive Director of the association, hailed 2023 as the most prosperous year in history for mutual fund investments. Over the past decade, the wealth stored in collective investment funds has more than tripled, ascending from 307 billion crowns in 2012. Brodani further underscored the diverse investment landscape of Czech households, highlighting significant allocations to various financial instruments, including banks, pension insurance, building savings, and life insurance.
The surge in mutual fund investments can be attributed to both market appreciation and a substantial influx of new investments. Bond funds delivered a robust eight percent return last year, while mixed funds and equity funds outperformed with returns of 11 percent and 17 percent, respectively. Additionally, structured funds, retail real estate funds, and money market funds contributed to the positive trend, registering returns ranging from four to nine percent.
Looking ahead, Martin Řezáč, Director and Chairman of AKAT, anticipates a gradual decline in yields from money market funds due to monetary policy easing. While bond funds may witness a slight dip in yield potential, Řezáč remains optimistic about their real yield prospects. However, he cautioned against political risks stemming from military conflicts and elections, which could impact the value of equity funds despite the favorable monetary and inflationary environment.
As of the end of 2023, bond funds emerged as the frontrunners in terms of assets, totaling 350.8 billion crowns, followed by mixed funds, equity funds, and real estate funds. Notably, bond funds recorded the most substantial increase in assets, surging by 116.1 billion crowns, underscoring the growing appetite for diversified investment options among Czech investors.
Article by Prague Forum
Recent posts
See AllPrague Forum Membership
Join us
Be part of building bridges and channels to engage all the international key voices and decision makers living in the Czech Republic.
Become a member