Despite high inflation and turbulent financial markets in 2023, citizens’ interest in investments, especially in investment funds and bonds, has grown significantly. This is what Swedbank’s statistics for 11 months of this year show. During this period, the volume of new investments in securities reached 44 million euros.
Over the course of three years, the number of clients who hold exchange-traded funds or ETFs in their securities or investment accounts increased by 360%, while those who have investment funds increased by 279%, Baltic stock shares – by 126%, foreign shares – by 71 %. Bonds also gained similar popularity: since last year, when central banks started raising interest rates, the increase in bond holdings in customer accounts was observed by 176%.
Bonds and funds are in the top of choices
In terms of amount of money, clients in Latvia have 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 shares and the Baltic Stock Exchange, respectively.
Evaluating clients’ most popular investment goals among funds, the most popular choice in terms of investment volumes is “Robur Corporate Bond Europe”, followed by “Robur Access Edge Global”, and the third place is the “Robur Technology” fund. 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 increased interest among clients in globally diversified mutual funds and exchange-traded funds (ETFs), such as ETFs that track the MSCI World and MSCI ASWI indices. On the other hand, among the most popular bonds were corporate bonds such as Storent, Eleving Group, etc., while among the government bonds, German, US and Polish bonds were popular.
External conditions favor the investment of free funds
“In general, the year 2023 has been really stormy: with the highest inflation that followed from 2022, as well as with the most rapid strict monetary policy from the central banks. However, at the same time, both last year and 2023 marked a significant leap in the field of investments in Latvia. Obviously the pressure of inflation and the loss of the 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 are likely to continue in the coming year. Therefore, what is worth remembering for new and future investors: financial markets appreciate the patient. Namely, those investors who do not panic at every stock price or market fluctuation, but both consistently and periodically invest in the financial markets to achieve their long-term financial goals. Storing spare cash in a checking account will only diminish its value, while the financial markets provide an opportunity to earn or maintain its value over the long term.”
2023-12-31 19:28:09
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