27 July 2010

Great rates of return and yields in March

Increasing signs of a turn in world economy entailed investors in Danish investment funds to celebrate springtime’s arrival with exceptional high rates of return. Share funds typically had about 7 % in return while the Eastern European funds topped at entire 12 %.

High rates of return in a 1-year term

The high rates of return in March signifies that many investors have had exceptional high rates of return the recent year in the popular funds with European and global shares around 50 %, while the Danish share market is also at the top and has yielded around 80 %. The Federation of Danish Investment Associations (IFR) publishes performance figures each month, and the figures show, however, that the capital losses after the financial crisis have not yet been obtained in the share funds, but the figures show positive results in most funds in a 5-years term.

“The rates of return have been extremely high since the financial crisis in 2008. However, it is important to remember that returns from shares must be seen in a long-term view since we in the future as well will experience price fluctuations that no one will be able to predict for certain. The performance figures show, that mixing share funds and bond funds in the portfolio is the best pre-caution against the fluctuations”, says Jens Jørgen Holm Møller.