Despite high inflation and turbulence in the financial markets in 2023, citizens’ interest in investments, especially in investment funds and bonds, has grown significantly. This is what Swedbank statistics show for 11 months of this year. During this period, the volume of new investments in securities reached 44 million euros.
Over the course of three years, the number of clients holding exchange-traded funds or ETFs in their stocks or investment accounts increased by 360%, while those holding investment funds increased by 279%, Baltic stocks by 126 %, those foreign shares – by 71%. Bonds have also gained similar popularity: since last year, when central banks began to increase interest rates, the increase in bonds held in client accounts was observed by 176%.
Bonds and funds are at the top of the choices
In terms of amount of money, Latvian clients invested the most in bonds this year (21 million euros), followed by Robur investment funds (7 million euros), exchange-traded funds or ETFs (7 million euros ). On the other hand, 3 and 6 million euros were invested in foreign stocks and the Baltic Stock Exchange, respectively.
Evaluating the investment objectives most popular among clients among funds, the most popular choice in terms of investment volumes is “Robur Corporate Bond Europe”, followed by “Robur Access Edge Global”, and in third place is the fund “Robur Technology “. On the other hand, among Baltic and foreign stocks, Enefit Green, Madara Cosmetics, Delfingroup, TUI, Volkswagen, Roche Holding, Bayer, etc. were popular.
In connection with various geopolitical conflicts, there has been growing interest among clients in globally diversified mutual funds and exchange-traded funds (ETFs), such as ETFs tracking the MSCI World and MSCI ASWI indices . Among the most popular bonds were corporate bonds such as Storent, Eleving Group, etc., while German, American and Polish government bonds were popular.
External conditions favor the investment of free funds
“In general, 2023 was a truly stormy year: with the highest inflation that has occurred since 2022, as well as the fastest and most stringent monetary policy by central banks. However, at the same time, both l Last year and 2023 marked a significant step forward in the field of investments in Latvia. Obviously, the pressure of inflation and the loss of value of money have forced more and more citizens to invest their free financial resources instead of keeping them in an account ,” explains Swedbank Investment Product Line Manager Roland Zauls. “Unfortunately, the volatility factors have not disappeared and will probably continue into the next year. What is therefore worth reminding new and future investors: financial markets appreciate the patient. That is, those investors who do not panic at any price of stocks or market fluctuations, but they consistently and periodically invest in the financial markets to achieve their long-term financial goals. Keeping spare money in a checking account will only reduce its value, while financial markets offer the opportunity to earn or maintain its value over time. long term.”
2023-12-31 19:28:09
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