Movements in the bond market were also reflected in mutual funds. Bond funds recorded net redemptions in September, reflecting the rise in interest rates. Within equity funds, Emerging Markets funds gained popularity. Redemptions from Equity Finland funds accelerated as investors realized profits. Total fund assets declined slightly from the record level reached in August, despite net subscriptions exceeding redemptions. The decrease was driven by September's market performance.
Total assets in Finnish-domiciled mutual funds decreased by EUR 2.6 billion in September to EUR 223.9 billion. Net subscriptions amounted to EUR 327 million, indicating that the decline in assets was attributable to negative market performance rather than investor flows. By the end of September, cumulative net subscriptions YTD had reached EUR 6.3 billion, with September accounting for approximately 5% of the total. Net subscriptions were fairly evenly distributed among Equity Funds (EUR 188.5 million), Asset Allocation Funds (EUR 148.1 million), and Short Term Funds (EUR 151.2 million). Redemptions in September were concentrated in a single main fund category, Long-Term Bond Funds, which recorded net redemptions of EUR 179.3 million.
