Aalto Ownership Lab
Aalto Ownership Lab is a research center studying corporate ownership and its role in society.
Finland ranks among Europe’s top investing nations, study finds
Nearly half of Finnish households now invest in stocks or mutual funds, according to a new study from Aalto University. The findings suggest Finland has emerged as one of Europe’s leading investing nations alongside Sweden.
The study shows that investing among Finns has increased rapidly over 15 years. Between 2009 and 2023, the value of stocks and mutual funds owned by Finnish households grew from €41 billion to €101 billion.
The research was conducted by Aalto University professor Samuli Knüpfer in collaboration with Pörssisäätiö (the Finnish Foundation for Share Promotion), which promotes financial literacy and investing. Unlike many earlier studies based on surveys, the research draws on nationwide register data covering the entire Finnish population, allowing household investing trends to be examined in exceptional detail.
In 2009, less than one quarter of Finns invested in stocks or mutual funds. By 2023, the figure had risen to 35 percent. When investors living in the same household are counted together, 47 percent of Finnish households had investments.
‘Finland has become one of Europe’s strongest investing cultures,’ says Knüpfer. ‘Finns also rank among Europe’s leaders in financial literacy.’
Only Sweden ranks ahead of Finland in the prevalence of investing. The findings challenge the long-standing image of Finns as cautious savers who primarily keep their money in bank accounts.
‘Investing has become an essential part of everyday life in Finland,’ Knüpfer says. ‘What makes this development particularly remarkable is that it has largely happened without major government policy measures, especially compared to Sweden.’
Several factors may have contributed to the growth of investing in Finland, including increased investment-related content in social and traditional media, stronger financial education in schools, competition among banks for investor customers and the introduction of tax-advantaged equity savings accounts in 2020.
The study also highlights the growing economic significance of retail investors.
‘It is significant for society that Finns want to build wealth through investing,’ says Sari Lounasmeri, CEO of Finnish Foundation for Share Promotion. ‘Investors also directly and indirectly finance business growth.’
Finland also ranks among Europe’s leading countries in investment wealth, although the gap with Sweden remains significant. In Sweden, 58 percent of liquid financial assets are invested in stocks and funds, while in Finland the share is more than 13 percentage points lower.
According to the study, many Finnish investors still hold relatively modest portfolios. In 2023, the median value of household investment portfolios was €8,732, while the average portfolio value was €75,035.
The study also found clear demographic differences among investors. The average investor is older than the general population and more likely to be male, urban, Swedish-speaking and university educated. Women already make up nearly half of all investors, although their investment wealth remains lower than men’s.
The trend is expected to continue.
‘Finland is approaching a situation where a majority of households invest in stocks or mutual funds,’ Knüpfer says. ‘We are already among Europe’s leaders. The next question is what Finland needs to do to become number one.’
Read more about the findings: Aalto Ownership Lab
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