Statliga eller Privata PPM-fonder? En komparativ studie om att aktivt välja fonder eller passivt vara kvar i statens förvalsalternativ.

Abstract

This paper examines the two investment strategies available within the Swedish Premium Pension System with the aim of illuminating whether it is more beneficial to actively select funds or to remain with the default portfolio option (AP7 Såfa). In order to answer this question, this paper splits the portfolio AP7 Såfa into its two component government funds, AP7 Aktiefond and AP7 Räntefond. This study then compares the above two government funds with private PPM-funds from the same categories – looking specifically at return, volatility, risk adjusted return and PPM-fee. The private funds used for this study were those active between the years 2015 and 2020. This analysis is carried out using Markowitz’s Modern Portfolio Theory (1952). The findings of this study reveal that the default option performs better than most of the private PPM-funds. For the majority of investors, then, the default option therefore seems more beneficial. However, it is often the risk preference that ultimately determines the investment strategy of a given investor.