Home » Business » Mutual funds are generally suffering this year, while equity funds have lost 8.8 percent

Mutual funds are generally suffering this year, while equity funds have lost 8.8 percent

“Stock markets are experiencing turbulent days. Their decline is mainly related to the earnings season for the first quarter. Technology companies, which account for a significant share of most funds, continue to be narrowed by the slowing coronavirus crisis, and especially the conflict in Ukraine. This situation naturally brings unrest among investors, “said Dominik Šulta, an analyst at Broker Consulting.

In commodity funds, April was quieter than 7.4 percent in March. They ended April with only a slight decline. After rocket growth since the beginning of the year, they have remained at almost the same values ​​over the last month.

According to Shult, this situation could indicate that in connection with the situation in Ukraine, the market is eagerly awaiting the further development of the situation regarding gas supplies from Russia, as well as the outcome of agreements concluded by other states in search of alternatives to these supplies.

Real estate funds are strengthening

Real estate funds were the only mutual funds to record 0.22 percent in April. They have strengthened by almost five percent in the last 12 months. They thus remain the ones least affected by the current market situation and world events.

The situation is different for bonds, which continue to go bankrupt. According to Šult, a change in the trend will most likely not occur for them. The reason is the increase in interest rates, which pushes bond prices down, while bond yields to maturity are rising. These funds have been loss-making for a long time, writing off 9.92 percent over the last 12 months. Money market funds recorded an even bigger loss in April, widening their loss to minus 4.1 percent since the beginning of the year.

The assets that the Czechs have in mutual funds fell by 6.5 billion to 701.1 billion crowns in the first quarter of this year. Last year, it rose by CZK 118 billion to CZK 707.6 billion. The most money this year fell in equity and mixed funds.

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