Aussies lead world in managed fund inflows
Australians have more money invested in managed funds than any other nation, with inflows having doubled over the past five years, according to a new survey.
The AFG Global Funds Management Index reveals that on a per capita basis, Australians invest $44,911 in managed funds, nearly 15 per cent more than our nearest rival, the US, by $39,145 and France by $29, 204.
Inflows to managed funds in Australia were found to have grown by a massive 97.5 per cent from the first quarter of 2000 and the final quarter of 2005.
The next highest increase in inflows for the period was recorded by France on 86.5 per cent, Spain on 82.9 per cent and South Korea on 77.4 per cent.
However, inflows growth slowed to 5.9 per cent within Australia during the last six months of 2005, behind the US on 8 per cent, Canada on 10.3 per cent, and the UK on 10.2 per cent for the period.
Ross Nayler, principal at AFG Financial Planning suggests the “subdued housing market in much of Australia has encouraged a lot of people to look to other asset classes, such as investing in shares via managed funds”.
“There’s a growing awareness of the need to diversify personal investment portfolios and an understanding that managed funds offer the best way for time-poor investors to access high-growth sectors within Australia and internationally,” Nayler said.
The mandated super savings also help underpin growth in the managed fund sector in Australia, he said.
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