Risk Averse Poles Fleeing 0% Bank Accounts Just Can’t Win
- Mutual funds see heavy inflows amid ultra-low interest rates
- Majority goes into bond funds, most of which are losing money
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Near-record inflows into Polish mutual funds in recent months may be a boon for the country’s 291-billion-zloty ($74 billion) asset management industry, less so for its clients.
With bank deposits paying little to no interest, Polish savers have been piling into mutual funds at the fastest pace since the global financial crisis. Yet more than 80% of the money is ending up in debt funds, potentially exposing clients to significant losses at a time markets have started fearing higher inflation.