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What are the yield opportunities
Savings in investment funds are suitable for you if you want to:
- accumulate your free funds
- indirectly invest in investment funds with a profit potential and at the same time you are willing to take the risk
- make long-term savings
SEB Life and Pension Baltic SE will hand over your deposited and accrued money for management to an investment fund manager chosen by you, who will invest in shares of different companies, government bonds and other financial instruments, according to the principles of the chosen fund. The fund manager will take care of your investment, will follow up and will even make necessary changes to ensure the best possible result, where necessary.
Key Investor Information (LAT)
Deductions for Life insurance with savings (with investment in funds)
How in internetbank make changes to contracts with savings in investment funds
Why you should consider accumulating money in investment funds?
- If you're willing to take the risk, you can earn more – this is a modern, widely spread form of savings, offered by SEB Life and Pension Baltic SE since 2006.
- You'll be able to regularly track your savings through SEB online banking and, if necessary, make different changes, such as changing the selected funds where your existing savings are deployed, changing the fund for the future contributions, as well as the permissible risk limits.
- We will help to choose the right solution for needs and opportunities for both a professional and a beginner – Apply for a consultation by a SEB Life and Pension Baltic SE specialist.
How do the investment funds work?
- There are many investment funds in the world that invest in different financial instruments according to their specific strategy. For example, there are funds that invest only in Asian countries or European countries; funds that invest only in shares of companies or government bonds; funds that invest only in certain industries. There are strategy funds suitable for clients without experience in financial markets.
- Each fund has one or more managers who make decisions, implement and follow up the investments made. SEB fund managers are professionals working in the financial sector for years.
- The result of the fund is reflected as changes in the values of the share (the value of the share is the "price" of one share). Consequently, the changes in the value of the share of the fund is the key milestone in the changes of your savings.
- You buy a certain number of shares of the fund for the value of a share of specific fund by making contributions to your life insurance policy. When the value of a share increases, you've earned, while at the moment the value is shrinking – your savings are reducing.
- Changes in the value of a share occur and are published every working day, but we recommend evaluating the fund's performance over a longer period of time, such as one year or several years. For the values of shares of the funds, please click here.
What kind of investment funds are offered by SEB Life and Pension Baltic SE?
If you do not have experience in the financial markets:
You can choose one of the investment strategies offered by SEB Life and Pension Baltic SE and accordingly the corresponding fund. Different investment strategies give you the option to choose the level of risk best for you depending on the attitude against potential losses.
If you have experience in the financial markets:
You can create your portfolio yourself, including 1, 2 or even more funds offered by SEB life insurance. The selected funds can be changed without restriction during the contract period. This will increase your profit opportunities; however, you will also take on more risk.
SEB Life and Pension Baltic SE investment funds and the values of their shares, see on the SEB investment fund values page.
What should be taken into account when making savings in investment funds?
- Life insurance with accumulation of assets in investment funds does not guarantee a specific profitability and/or retaining the paid amount.
- Financial markets are cyclical – this means that there will be both highs (the selected funds will increase their value in the short term) and lows (the selected funds will lose value in the short term) during the validity of your policy, which definitely will increase or decrease the amount of your savings. If a crisis broke out in the world, the value in the short term would fall very substantially.
- The yield of your chosen funds and consequently the amount of your savings will be affected not only by the results of the businesses chosen by the fund manager and the macroeconomic indicators of countries (GDP, inflation, unemployment, etc.), but also various world events – decisions of the national central banks, national elections, natural disasters, conflicts and hostilities, various national decisions, currency fluctuations.
- Choose the funds that are appropriate to your risk tolerance – before you choose a fund/funds you should familiarize yourself with its description, available here, paying special attention to the risk indicators.
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There are several solutions that will help you to reduce the risk:
- Make regular contributions – you will significantly reduce your chance of losing money invested in the shares. Each time you make a payment, we will buy shares of funds selected by you, the value of which change regularly. In this way you will make purchase of shares of the funds for both a lower (more profitable) and a higher value of a share (disadvantageous).
- Determine your risk tolerance limit – the opportunity to connect automatic risk control at any time or to set a specific limit of risk tolerance for each fund up to which you are willing to risk with your investments. Upon reaching it, your savings will be automatically transferred to another investment fund or to savings with guaranteed profitability. You can also choose to receive only an automatic notification from the insurer about the border and even to decide what to do with your savings.
- Extension of the contract – if your contract expiration occurs when the financial markets drop, you can extend the contract and withdraw the savings at any other more appropriate time.
- Do not invest your money in investment funds when there is a high probability that you will need these means before the end of the contract.
- If you make contributions in other currencies, please note that the amount of savings can vary due to the currency fluctuations.