Preferred Finances of Ebase Customers in July 2021
In the latest portfolio analysis by Ebase, the investment trends for July 2021 suggest a careful navigation by investors between seeking growth opportunities and managing risks amid uncertain macroeconomic conditions.
The fund flow factor for July stood at 1.61, indicating significant net inflows, with purchases of equity funds exceeding sales. This trend was also reflected in the trading activity, where purchases of mixed funds exceeded sales by more than double, and purchases of bond funds also exceeded sales.
Ebase customers expanded their fund holdings across asset classes in July, with a slight increase in allocation towards emerging markets. This cautious optimism about economic recovery outside of developed markets was balanced by a preference for a diversified portfolio approach, which included balancing equities with bonds and alternative investments.
The sectors that showed continued interest among investors were technology and healthcare, sectors that demonstrated resilience during the pandemic. There was also a growing attention to sustainability and ESG (Environmental, Social, Governance) criteria in investment decisions.
The trading activity in July was 98 percent of the previous year's average, indicating slightly below-average trading activity compared to the previous year. The trading volume in July was at approximately the same level as the trading-intensive year 2020. A value under 100 in the trading activity indicates below-average trading activity compared to the average monthly trading volume of the previous year.
Equity funds focusing on companies in Germany were mainly sold in July, while equity funds investing worldwide or in Asia were in demand. Mixed funds investing in Europe or worldwide were particularly popular among investors.
Ebase, which manages over one million customer accounts with a volume of around 40 billion euros, reported that in July, purchases exceeded sales by more than 60 percent. The fund flow factor for equity funds in July was 1.42, indicating purchases exceeded sales by more than 40 percent. However, the fund flow factor for mixed funds in July was not specified.
The analysis is based on data provided exclusively by Ebase. No specific data was provided about the trading activity in July compared to the previous year. The CEO of Ebase, Kai Friedrich, emphasised that these trends highlight the careful approach by investors in navigating the ongoing uncertainties related to the COVID-19 pandemic and its impact on the global economy.
- Amid the ongoing uncertainties related to the COVID-19 pandemic, Ebase customers have been strategic with their personal-finance decisions, with investments heavily leaning towards equity funds that cater to global markets, especially those investing worldwide or in Asia, rather than selling equity funds focusing on companies in Germany.
- navying through uncertain economic conditions, investors have demonstrated a growing interest in sustainable investments, as evidenced by the increasing attention towards ESG criteria and the expanding fund holdings in mixed funds that offer a balanced approach between equities, bonds, and alternative investments, such as those investing in Europe or worldwide.
