The 7th AP Fund (Såfa) has historically performed very well, which is largely due to the leverage*. With that said, it is important to be aware that the reason for the good result is mainly the high level of risk that the leverage entails. In some situations, especially if you are young and have a high risk tolerance, this can be a good alternative but it is perhaps especially if you want high risk.
When Lifeplan puts together the advice, we always see the pension as a whole. This is also the main reason why we have recommended funds other than AP7 within the premium pension. When you have various different insurances with different eligible funds and different levels of discounts on fund fees, it is simply more effective to use the strong discounts on fund fees within the premium pension to choose the funds that normally have a slightly higher fee.
In your other insurances, you can then instead choose the funds that are normally a little cheaper. In this way, you can get a well-diversified portfolio for the entire pension at a lower average fee than you could have if you were to stay in AP7 Såfa and have to buy more expensive funds in other insurances.
As our advice is based on treating the pension as a whole, we do not recommend following our other advice if you would like to stay at AP7 Såfa. The level of risk and diversification in the portfolio will then be incorrect, probably too high, and there is a risk of negatively affecting the return on the pension as a whole. You should therefore either follow our advice in its entirety or adjust the fund choices in other insurances yourself to balance the risk in the premium pension if you keep the AP7 Såfa.
If you have questions about this you can call us on 031-109870 Mon-Fri 9-17.
*) a financial strategy that involves borrowing money to increase the potential return on an investment
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