Mutual funds

What is a fixed-income fund?

A fixed-income fund is a fund that invests the money in fixed-income securities such as bonds and commercial papers.

Read more about fixed-income funds

How can you easily save for your pension in a mutual fund?

DNB Lev Mer is a mutual fund specifically adapted to saving for a pension. Risk in the fund is adjusted based on how many years you have left to save before you retire.

Read more about DNB Lev Mer

What is an investment account?

With an investment account, you can buy, sell and swap all types of funds and shares, on selected stock exchanges around the world, without triggering tax. The tax liability only arises when you withdraw money from the investment account.

An investment account is a savings insurance product which means that is also comes with life insurance policy of 1 per cent of the total value of the agreement.

Read more about investment accounts

What is a balanced fund?

A balanced fund is a combination of an equity fund and a fixed-income fund. The recommended saving period depends on how large a proportion of equities you have chosen in your balanced fund.

Read more about balanced funds

What is a share savings account?

With a share savings account you can buy, sell and swap shares and equity funds without triggering tax along the way. You only pay tax when you take out profits.

It is a requirement that equity funds have more than 80% shares in order to be able to trade in a share savings account.

Read more about share savings accounts

Why do I need a share savings account?

With share savings account you can buy, sell and exchange shares and equity funds without triggering tax along the way. You only pay tax when you take out profits. It doesn’t cost anything to open a share savings account.

Who is a share savings account suitable for?

A share savings account is suitable for normal savers. Here you can bring together all your investments in shares and equity funds.

Why do I need a share savings account?

If you save in an equity fund or in shares, you will get a better overview with a share savings account. You only pay tax when you take out profits. You can take up to the amount you have put into the account at any time, tax free.

How do I buy my first mutual fund?

You can easily buy mutual funds in the Spare app or by logging into the online bank. Then select the fund you have decided on from the list. Choose a lump sum or a fixed savings scheme.

How do I get started with mutual funds?

The best way to save in a mutual fund is via monthly purchases. With a savings scheme, you don’t have to think about timing the market. Regular monthly purchases usually give you a good average price.

How long is the processing time when I buy, sell or exchange a mutual fund?

When you buy a mutual fund, we withdraw the money from the selected account within one business day. It will then take 1-2 working days for you to see the fund you bought in the overview “My mutual funds”.

If you are selling a fund, the sale is carried out within 1-2 working days. It is the price on the day of the sale that determines exactly how much you are left with.

When you exchange mutual funds, this is carried out within 1-3 working days. It is the price on the day of the sale that determines the value of the shares and thus how many shares you get in the fund you switch to.

For trades in external mutual funds and DNB mutual funds established in Luxembourg, it will take a few extra days to get a price. Normally it takes 2-6 working days before you find the mutual fund under My Mutual Funds.

Should I pay down the home mortgage or save in a mutual fund?

It depends on how large your home mortgage is and what interest rate you have on the home mortgage. You should prioritise paying down the home mortgage rather than saving extra in mutual funds until it is at a "comfortable level". Ideally below 60%, which is the limit for a home equity credit line at most banks, and which allows you to get good interest rates.

How much should I save?

How much you should save depends on what you’re saving for, how long you’ll be saving for and what risks you want to take.

The longer the savings period, the greater the risk you can take. And the greater the risk, the greater return you can expect.

Read more about which savings goals you should have.

Is the money locked up?

No, but if you save in individual pension savings (IPS ) the money is locked until retirement age. If you buy a mutual fund outside of the IPS, you can sell your mutual funds at any time and have the money back in your account within a few days. What you get out depends on how the mutual funds have done it in the period you have owned them.

Can I have a savings scheme in different mutual funds?

You can have savings schemes in as many mutual funds as you want. By having savings schemes in different funds, you also spread the risk.

What do I do when I need the money?

If, after a while, you would like to use the money, you need to sell the shares in the fund. You can easily do this in the Spare app or by logging in to the online bank and going to ‘Sell mutual fund’.

Why save in a mutual fund?

The simple answer is: because over time it’s more profitable than saving in an account. At the same time, there is also more risk involved. You should therefore save over a longer period of time in the fund, because time reduces risk. In equity funds, we recommend that you save for at least six years.

Money you need again soon should be put in a savings account.

Should I have multiple funds to spread the risk?

Not necessarily – if you choose a global index fund, you’ll have a good spread across most industries and across the world. If, on the other hand, you choose to buy industry funds (for example: health) multiple funds may the right choice, so you are not as exposed to developments within a single industry.

Should I wait to enter the mutual fund market?

If you are going to start a savings scheme, the answer is No. Historically, it’s been proven that the amount of time you are in the market is more important than when you entered the market. The best individual days have historically been in “rough periods” and if you miss these, much of the long-term return is lost.

Does an index fund have lower risk than an equity fund?

An index fund is also an equity fund, but it may have a slightly lower risk as it often spreads money across even more companies than some equity funds. And the more different companies you own, the lower the risk of all of them doing badly at the same time.

What are transaction costs?

Transaction costs are costs that the mutual fund incurs from buying and selling securities, such as brokerage fees.

What are results-based costs?

Costs in an individual mutual fund that are incurred if the fund performs better than its benchmark index.

Read more about results-based fees

What affects the size of the transaction costs?

What most affects the size of the transaction costs is the markets in which the mutual fund invests, and how active the mutual fund is. For example, DNB Teknologi will have higher costs than DNB Global Indeks, because DNB Teknologi carries out more trades.

Does the costs report take into account the different mutual fund accounts?

The costs report is shown per mutual fund regardless of the type of mutual fund account (share savings account, individual pension savings (IPS) and mutual fund account).