Do investors invest long-term risks?

Stock markets at home and abroad whistled for a week, and the record price of oil did not prevent them. The good results of the stock market are thus reflected in the popularity of mutual funds and investors are thus shifting their funds from conservative to dynamic funds. Pioneer will launch a new regular investment program in our market.

Easter holidays did not bring anything positive to the US stock market. The rapidly rising price of oil and other commodities and the end of concerns about rising year rates meant a stock index. In this case, the situation on the markets looked somewhat different and investors, supported by the good results of several prominent companies, threw themselves into the purchases.

Good mood shot out in the market so in the middle. The markets were honored by the positive impact of the one-year suspension of interest rates, and growth was not undermined by the continued rise in oil prices. Only the technological sector paid for the somewhat volatile development of the fourth business with a decline. On the market, the influence of oil was revered on the markets, and its price hit record levels. Even five declines in the end did not have a significant negative effect on good weekly results (DJIA +1,74 %, Nasdaq +0,55 %, S&P 500 +1,8 %).

The shortened week on the domestic stock exchange did not start well, but in the end the investors recovered and the PSE is behind the week. The title with the most significant weekly growth was the development company Orco (+ 11.2%), which announced the acquisition of the German company Viterra Development. Other growth stocks were Erste bank (+ 3.2%), which helped raise the recommended and targeted prices, and so was EZ (+ 3.1%).

On the other hand, the upgrade recommended or outside the customs price did not prevent the decline of CETV (-2.8%). The second stock, which recorded a slight decrease during the week, was the pharmaceutical company Zentiva (-0.4%). As other stocks ranked three times higher thanks to very good results in the first week, the Prague Stock Exchange could write growth week (PX + 2.35%).

Changes in the breeding investor are long-term

The fact that the change in the priorities of domestic investors and the transfer of funds from conservative funds to funds with dynamic strategies is not just an isolated short-term impact, we can see when looking at the monthly and quarterly statistics on the sale of domestic funds.

In the quarterly net sales of more than 6 billion K in the funds of the Association of Funds and Management Networks (AFAM), funds have the largest share (net sales of 3 billion K), followed by exchange funds (1.8 billion K) and equity funds (+1 .2 billion K). Bond funds recorded the same sales in the amount of 423 million CZK and 474 million CZK flowed from the money market fund.

Trading according to AFAM

Type of fund The best The worst
Nzev fond As a result Nzev fond As a result
Shares ISS Sporotrend 3,68% PI Farm. a biotech. 0,28%
AKRO novch economic 2,83% IKS Svtovch index 0,36%
PI Rop. a energ. prmyslu 2,45% PI Nov economy 0,48%
Bonds AIG FCE Central European 0,44% IKS Bonds -0,32%
ISS Trendbond 0,37% Pioneer-oblige -0,30%
IKS Plus bondov 0,18% PI Sttnch. bond -0,12%
Funds fund ICS Fund Fund 0,55% IKS Max 5 -0,69%
IKS Max 1 0,44% IKS EuroMax -0,10%
IKS Fnix dynamick 0,28% IKS Fnix konzervativn -0,09%
Pennho Market IKS Penn trh 0,04% Pioneer-Sporokonto 0,03%
ISS Sporoinvest 0,04% PI Penenho Market 0,03%
SOB Entries 0,03%
Smen IKS Balancovan 2,33% IKS Max 4 -0,71%
UNDER stedoevropsk 1,42% IKS Max 2 -0,22%
SOB realitn mix 0,94% AKRO balancovan -0,11%
is sales of mil. K IKS Fnix smen 41,3 ISS Sporoinvest -50,8
ISS Konzervativn Mix 34,8 ISS Sporobond


ISS Vyven Mix 34,8 IKS Penn trh -37,6

Source: AFAM

In the ordinary, money market funds even wrote off sales of more than 715 million CZK, while other groups of funds, of course, drank. In the past week, the same sales of the AFAM fund were insignificant (+90.9 mil. K) again due to the outflow of funds from money market funds (-78.3 mil. K), to which were added bond funds (-99.6 mil. TO). The largest interest was again in the funds (+170.0 million CZK), mainly due to the profile funds of IKS and ISS.

Will the new product come from Pioneer?

Pioneer Investments will launch a new regular investment program called Rentier Invest. The program is based on the concept of the so-called life cycle fund (we wrote about them at the end of last year in this article), which are very different, especially in the USA and are gaining popularity in Western European countries.

The basic principle of the program is the gradual rebalancing of the portfolio, ie. change in the balance of risky and non-risky assets according to the amount of time until the end of the program. The program can be used for a one-time investment, as they are its basic part of a long-term strategy (eg secured before retirement), its possibilities will be used more by those who invest funds at regular intervals with a long-term investment horizon.

Similar to the life cycle fund, the Rentier Invest program offers several sub-programs with an investment horizon. Long-term programs have a portfolio of dynamite, while programs prefer conservative tools. The liquidity of funds is the same as for mutual funds.

Interested in Pioneer Invest’s new? According to vs life cycle funds do they have a future in ns? Dark on your ideas and experience.