2022 was the “worst year” ever for Danes who invest their money through mutual funds typically connected with banks and financial institutions. 

For the first time in 40 years all Danish investment categories delivered negative returns. Year 2022 was also the first year when both equity and bond funds lost more than 10% on average. 

Even during the financial crisis in 2008 it was still possible to get positive returns on bonds, writes Finans Danmark, the business association of the financial sector, in a press release.

Retail funds lost 13.1% on average in 2022. However, this was better than in 2008 when the average loss stood at 16.4%.

“The combination of extremely poor returns in the equity and bond markets in 2022 has been quite unique. In investment terms it looks like a 100-year event,” says Kåre Valgreen, Head of Investments at Finans Danmark.

He adds that the advice on spreading investment risks in order to minimize losses fell short in 2022.

(This article was provided by our Danish sister media, FinansWatch)