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Save Money in Funds | common thoughts | Viola Blog

Saving money in mutual funds is common in Sweden, but for anyone who wants to start fundraising, or just want to review their existing savings, it may feel difficult to get an overview. Below we therefore answer four of the most common questions about saving money in funds.

Why save in funds?

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Saving money in mutual funds has many benefits. As you may already know, a fund consists of collectively owned securities, such as bonds or shares. Thus, your investment as well as the risk is spread over several different securities. In addition, saving in funds is relatively easy. A fund manager selects, buys and sells securities within the fund, which means that you do not have to do it yourself.

What funds can you save in?

There are many different types of funds you can save money in. The type of fund is determined by which assets the fund invests in.

An equity fund invests at least 75% of its assets in equities, while an interest fund invests in interest-bearing securities such as bonds or treasury bills. There are also funds that invest in both equities and interest-bearing securities, these are called mixed funds.

Index funds, or passively managed funds, are funds that aim to have a development and return that is in line with the market index that the fund should follow.

Hedge funds aim to generate a positive return, regardless of how market developments look. Such a fund has freer rules on how the money may be invested than, for example, a stock fund has.

If you choose to save in a so-called fund-in-fund, the money is invested in another fund instead of, for example, shares or bonds. There are also funds that only invest in specific industries, markets and regions.

What does it cost to save in funds?

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The simple answer to that question is; it depends on! How many and how much fees you need to pay when saving money in mutual funds depends entirely on the fund you are looking at.

The most common fees are the management fee, an annual fee and the fee to buy and sell your fund shares.

The management fee is to cover the fund manager’s costs for administration and management of the fund you are saving in. Sometimes an annual fee is also charged. In addition to the administration fee, it also includes the cost of, for example, counseling. The buying and selling fee is exactly what it sounds like; a fee for buying or selling unit shares.

Some funds also have something called performance or performance-based fees. It is a fee that you only have to pay if the fund achieves a certain goal. This is most common in hedge funds.

Thus, how many of these fees and how much you need to pay varies from fund to fund, so when you compare different funds it is wise to also compare their fees.

How safe is it to save in funds?

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Saving in funds always involves a risk of losing the money you have invested. Therefore, when reviewing your savings, there is a recurring advice that you should always keep in mind, regardless of the form of savings; Invest only as much money as you can afford to be without.

However, saving in mutual funds entails less risk compared to saving in equities, since the spread of risk in a fund is usually greater. To spread the risk further, it can also be good to save your money in several different funds. For the different fund types that we mentioned above, it generally means a greater risk of saving money in equity funds than for example in fixed income funds, but regardless of the level of risk on the fund, in the end it is how much risk you as a saver are prepared to take that will guide your choices.

When assessing it, you should consider what you save for and how long term you save. If you want your savings to grow in the long term, you may also be prepared to take a little bigger risk. Do you know that you need access to the money relatively soon, it is wise to choose a lower risk fund.

How much time you are prepared to spend on your savings also comes into play when talking about risk. If you are willing to get a lot involved and monitor the development of the funds continuously to try to find good buying and selling situations, you may also be able to take a slightly higher risk with your fund savings. If, on the other hand, you want to spend quite a bit of time on your savings, it might be wise to save a month. Then you buy unit shares continuously, regardless of market situation, and thus do not need to keep an eye on when it is good or bad buying situation.

Invest your money with Viola

An alternative to fund saving is to invest your money with Viola. With low risk and high returns, you lend money to creditworthy individuals through our digital platform. If you save in the short term, you can get your money paid out once a month. If you want a longer-term savings, you can choose to reinvest the money in new loans and thus allow your investment to grow further over time. When you want to access the money, you simply choose to have them paid out.

Interest – what is it and can it be avoided?

Want to avoid a large amount of intercalary interest? Intercalary interest refers to the interest accrued from the day the loan is used until the regular repayment or payment of the first annuity begins.

Intercalary interest depends on


  • loan amount
  • the nominal interest rate
  • payday
  • the day of the month when the annuity is debited

For smaller loan amounts, the intercalary interest rate is insignificant. With larger loans, it can be up to several thousand euros. If you want to avoid your intercalary interest being charged to the bank, you need to find out from the banker who is in charge of the annuity day of the month.

Most banks make annuities at the beginning or end of the month, and you will receive accurate information from the bankers.

Here are two examples of computing intracellular interest


Include the following information in the formula:

Loan principal amount × nominal interest rate × number of days remaining until the day the bank borrows annuities / 36500 = intercalary interest rate

Example: A loan of HRK 28,000.00 is paid on 15.03.2014. years . The nominal interest rate on which the monthly annuity is calculated is 8.99%. The Bank debits the annuity on the last day of the month, namely on 31.03.2014. In the aforementioned case, the number of days from loan placement to annuity borrowing is 15.

28000 × 8.99 × 15/36500 = 10.44 HRK

28000 × 0.0899 × 15/365 = 10.44 HRK

Example: A loan of HRK 725,000.00 is paid on 04/17/2014. years. The nominal interest rate on which the monthly installment is calculated is 6.25%. The Bank will debit an annuity every 5th of the month, namely 05.05.2014. In the aforementioned case, the number of days from loan placement to annuity borrowing is 17.

725000 × 6.25 × 17/36500 = $ 349.00

725000 × 0.0625 × 17/365 = $ 219.00

Intercalary interest is usually deducted from the amount the client receives on hand when paying off the loan.

For more information on interest rates in general, we definitely recommend the Interest Rate article – all about them and more, and after that it’s good to know how to choose a bank.

For larger loan amounts (home loans), banks try to avoid the inclusion of intercalary interest in the EIR, and it is a common practice for the client to pay the amount of intercalary interest in cash on the day of the loan.

Don’t overpay your loans!


“Pushing” a payment to avoid paying this expense is not an easy task. With the help of a Good Finance Group credit intermediary, you can easily calculate the intercalary interest rate and plan your loan repayment in advance, thus saving on this as well as on other expenses that are noticed in the credit analysis.

A more expensive TV has a better picture. More expensive credit has more installment and nothing more. With Progress you save money and time first and foremost. Complete the Good Finance Credit Questionnaire.

How to Choose a Bank

Successful cooperation of citizens with a commercial bank is usually a long-term relationship. The location of branches and ATMs is crucial when choosing a bank, but the final decision of the citizens how to choose a bank is often influenced by the attitude of employees towards customers.

It is not easy to make a decision about which bank to bind to. The safety and reliability of the bank as a financial institution and the adaptability of banking products and services to customers (privileges) are key factors.

One bank for life

One bank for life

It is important that a bank where we have open transaction accounts, debit loans, savings on savings, whose payment cards, internet or mobile banking we use, operates solvent and stable.

The hectic daily life, requirements at work, childcare, doctor visits, learning a foreign language, passing a driving test and similar obligations do not leave citizens with enough time to study and compare banks and their business conditions.

The choice of a particular bank often depends on the smallest details and it is extremely important that we feel comfortable in the bank. By the term employee of a bank employee we mean a professional, friendly person available for the information requested. Most often, the accessibility of the banker is the decisive criterion for choosing a bank.

Customers who are satisfied with the bank, the staff service and the range of banking products remain loyal to it for the rest of their lives. It is an unrivaled partnership. The bank is with us when we receive our first salary and last pension.

Do citizens choose banks or vice versa?

Do citizens choose banks or vice versa?

The diversity of banking products and services is increasing every day, and the goal is to reach a wider group of clients. Basically, the image and marketing of a commercial bank are tailored to a specific type of client.


It is especially important for retirees which date of the month their earnings will be placed in their current account. This detail is the motive for choosing a bank.

Citizens who are driven by long queues and waiting have resolved their frustrations by choosing E-Money Bank. The Bank has introduced a mobile redomat application that provides citizens with the option of booking an appointment, of their choice, to perform financial transactions at a branch. Clients are notified of their turn by mobile.

Public transport users in the City of Zagreb and Zagreb County receive a 10% discount on their purchase of general, primary, secondary, high school, student or retirement annual tickets.

At Privredna banka Zagreb, businessmen can use the service of transaction account management, financing of import-export business and factoring via the Internet.

According to tradition, banks perform the role of financial consulting and payment services. In recent times, banks have represented institutions dealing with a much wider range of financial services.

Finding out that some of the services they provide are valuable to their customers also encouraged banks to expand their banking services. Today, banks fully manage the cash of citizens and businesses and invest their liquid surpluses in deposits, securities, investment loans, monetary funds, pension funds and the like.

In recent years, we have been encountering products of insurance companies in bank branches. The guarantor payer as collateral for the loan repayment has been replaced by the loan beneficiary’s life insurance policy and the loan repayment insurance policy.

There is something for everyone in the wide selection of financial products that banks make available to citizens.

Citizens can use the products and services of banks at their own discretion, but with some monetary compensation; in the form of a one-time or multiple fees, interest rates, discounts, etc.

Interest on loans and deposits


Interest rates represent the cost of borrowing money, regardless of whether the client is in the role of borrower (borrower) or creditor (depositor).

In simple terms, the interest rate on loans shows how much more money a borrower needs to repay to a bank than the amount of money he or she borrowed.

Interest rate on time savings in HRK . The deposit amount is HRK 7,500.00 and the deposit period is 36 months:

Interest rate on the Lombard loan based on the redemption value of the policy . The loan amount is EUR 10,000.00 and the agreed repayment period is 5 years:

The interest rate on the contractual savings may partially or completely correct the negative effects of the fall in the real value of monetary assets due to the impact of inflation.