How to Pick Funds Without Losing the Will to Live

Let’s talk funds. Because once you get past the initial high of opening your shiny new ISK, you’re dumped into a sea of fund names that sound like either obscure pharmaceuticals or forgotten IKEA furniture.

You’ve got “Sweden Equity Small Cap A” and “Global ESG Opportunity Enhanced X”, and suddenly you’re Googling things like “what is a cap?” and “am I supposed to know this?”

You’re not. I didn’t. And I still managed to sort it out — mostly by deciding I want fewer surprises in life. My kids provide enough of those.

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What I Look For In A Fund

Let’s be clear: I’m not a financial advisor. I’m just a mum with three kids, a mortgage, and no time for market drama. So here’s how I decide which funds make the cut:

1. Passive beats active (most of the time)

Active funds are like that high-maintenance friend who swears they always know the “best new thing.” They charge you more for the privilege… and usually underperform.

Passive funds? They just track the market. No drama. No big promises. Just boring old consistency. Chef’s kiss.

2. Global funds are the main meal. Swedish ones are a side salad.

Putting all your eggs in the Swedish basket might feel patriotic, but it’s not exactly balanced. I want a mix:

• Global funds = Apple, Nestlé, Microsoft, LVMH — the world’s big players.
  • My personal list includes Länsförsäkringar Global Indexnära, a solid, diversified global fund. Low-fee, passive, and covers a ton of big-name companies. Think of it as the international school of investing — everyone’s here.
• Swedish funds = IKEA, Volvo, and the gang. Solid, but let’s not pretend they’re the whole economy.
  • I bought the Avanza Zero which tracks the OMX Stockholm 30 (the 30 most traded companies in Sweden). It’s no-frills, no-fee, and very Swedish. Like buying meatballs and a high chair at the same time.

3. Fees matter more than you think

A 1% fee sounds small, right? But over 20 years, it can eat up a huge chunk of your returns. I’m paying for preschool, not fund managers’ beach homes. So I stick to low-fee funds — usually under 0.3%.

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Funds I Had Bought But Dumped After I Understood Investing (and Why)

SEB Sweden Fund

Too expensive for what it offers. There are cheaper ways to invest in the Swedish market — like Avanza Zero, which charges zero fees. Yes. Zero.

PriorNilsson Sverige Aktiv A

It’s actively managed, has higher fees, and honestly… it just didn’t bring much to the table. I’d rather have broad coverage than a manager guessing who wins next.

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Here’s a quick comparison of the different fund types:

Fund Type	What It Covers	Fees	Risk Level	Good For
Global Index Fund	1000+ large companies worldwide (e.g. Apple, Nestlé)	Very low (~0.1%)	Moderate	Long-term growth, diversification
Swedish Index Fund	Top companies on Stockholm exchange (e.g. Volvo, H&M)	Low (0%–0.3%)	Moderate	Supporting local economy, balance
ESG Global Fund	Like a global fund, but filters out “environementally-unfriendly” companies	Low–moderate	Moderate	Values-based investing
Active Fund	Hand-picked stocks by a manager	High (1%–2%)	Can be high	Risk-takers, short-term bets
Interest/Bond Fund	Government/corporate debt	Low	Low	Stability, preserving capital

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Final Tips

• Stick with 2–3 funds tops — more than that, and you’re just rearranging the bookshelf while the house is on fire.
• Set it and forget it. Automatic monthly contributions are your best friend. No drama.
• Don’t stress the daily ups and downs. Your investments are not your toddler’s mood swings. They’ll level out.

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If you’re still feeling stuck, here’s your shortcut:

Pick one global fund, one Swedish fund, and call it a day.

You’re not trying to be Warren Buffett. You’re trying to not be broke in 20 years while also remembering which kid refuses bananas this week.

Next: So… If You Only Need 2 Funds, Why Are There 2,000?

Disclaimer: I have no affiliation with Avanza other than being a customer