Swedes withdraw billions from stock funds amid market turbulence

Swedes pulled 18.6 billion kronor from stock funds in March as market volatility intensified, according to a report by public broadcaster SVT Nyheter. While the outflows reflect growing unease, analysts stress that most investors are staying put.

Data from the Swedish Investment Fund Association shows net withdrawals of 18.6 billion kronor (approximately $1.75 billion) from equity funds last month, with around 8 billion redirected into lower-risk bond funds. The shift comes after repeated sharp declines in global stock markets.

Fredrik Hård, an economist at the association, described the outflows as “not dramatic” but acknowledged a clear link to global uncertainty. “It’s only 0.3 percent of total Swedish equity fund holdings,” he told SVT, adding that “the vast majority are staying the course.”

Hård cautioned against attempting to time the market by selling during downturns and buying back later, calling it a “difficult and risky strategy.” Instead, he advised investors to maintain a long-term perspective, noting that temporary turbulence has little impact over extended saving periods.

“The smartest approach for most people is to keep saving and think long-term,” he said, emphasizing that equity investments should only involve funds not needed for immediate expenses.