Czech Investors See Modest Gains from Funds in 2023

Czech investors who placed their money in mutual funds have seen modest gains this year, according to the Czech Investor Index (CII750) compiled by Swiss Life Select. From the beginning of the year until the end of June, the average Czech investor earned 5.7%, with funds rising 2.9% in the first quarter and 2.73% in the second quarter. The index tracks the performance of 750 investment funds active in the Czech capital market.

Despite weaker results from the previous year, investors in equity funds have earned an annual profit of 7.64% in the last three years, according to the index. Over a five-year period, including the significant losses from the end of 2018 and 2019 and the drops from the Covid-19 pandemic in March 2020, the average Czech investor saw a yearly increase of 5.14%.

In the first half of 2021, the best-performing funds in terms of returns were those with more significant weightings of American tech giants, namely the top five tech companies (Meta, Amazon, Netflix, Google, and Apple), according to the index. Consumer discretionary funds also achieved exceptional results. Chinese equity funds, on the other hand, significantly lagged in the performance rankings.

In the second quarter, funds from Latin America, Japan, and Central Europe joined the winners. In the past three months, the finance sector has also shown better results, which may signal a gradual decline in concerns about banking instability.

At the same time, Czech investors have increased their investment in mutual funds by CZK 29 billion ($1.35 billion) in the first quarter of this year, bringing the total value of assets held in mutual funds to CZK 780 billion ($36 billion).

Investors should note the latest investment trends and stay informed of market developments to make informed decisions about their investment strategies.