Equity funds

What is an actively managed fund?

An equity fund can be actively or passively managed

An equity fund can be managed according to different guidelines. The main categories are active and passive management (index-based management).

Active management means that the fund manager selects a different composition of securities in the mutual fund than the composition of the fund’s benchmark index in order to try to generate better returns.

What is a passively managed equity fund?

An equity fund can be actively or passively managed

An equity fund can be managed according to different guidelines. The main categories are active and passive management (index-based management).Index-based management).

Passive management involves the mutual fund’s portfolio only having minor deviations from the benchmark index it follows. Since the index fund, among other things, does not have managers trying to generate better returns than the index, the costs are lower than for actively managed funds.

How much do I need to save?

When saving in an equity fund, you can either save a lump sum, set up a monthly savings scheme or a combination of these two options. Every single equity fund has its own minimum amount, and often it’s just NOK 100.

How much does an equity fund cost?

The costs for an equity fund, better known as annual management fees, vary from equity fund to equity fund. They are stated as a percentage and are deducted annually from the money you have in the equity fund. See the costs for each equity fund in The savings app Spare.

When should I save in an equity fund?

Equity funds are suitable for people who want to invest in shares, but who do not want to monitor the shares on a daily basis. If you need your savings within six years, you should not save in equity funds.

Which shares does an equity fund consist of?

Some equity funds focus on owning shares in one country or region of the world, other equity funds only invest in selected industries such as technology, healthcare or renewable energy.