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Finnish investment funds and bank accounts bulge with record holdings

While Finland's economy remains in a seemingly-endless downturn, there is a record volume of money in the country's investment funds and bank accounts.

Henkilö laittaa kolikoita säästöpossuun.
More Finns seem to putting money away for a rainy day. Image: Yle

The value of the capital in Finnish investment funds is higher than ever. Total savings and invetsments funds rose in August to 101.3 billion euros, the Federation of Finnish Financial Services (FFI) said on Thursday.

This is due to new fund offerings and the growth in value of funds. About a million Finns – or nearly one in five – have some money in investment funds.

In August new investments of 300 million euros flowed into investment funds. Altogether there were 463 investment funds on offer in Finland.

Most popular are equity funds, in which Finns placed 140 million euros last month. Next most popular were long-term interest funds and mixed funds.

However public interest in equity funds has been weak, as new investments have declined by about 800 million euros so far this year. Meanwhile alternative funds have attracted 600 million euros in new investments.

The UK's Brexit vote caused uncertainty on the market in early summer but the situation was calmer in August, with more people daring to make new investments, the FFI said.

Finns also have a record amount of money in traditional transaction bank accounts, over 60 billion euros, even though interest rates have fallen.

The European Central Bank decided on Thursday to keep its key interest rate at a record-low 0.00 percent.