The interest of the Latvian population in investments is growing rapidly; – Market news

According to Swedbank data, the interest of the population in investing has grown significantly last year, especially in various funds and Baltic equities. Thus, last year, compared to 2020, the total amount of investments in Swedbank Robur funds increased by 1930%, the Baltic stock exchange shares – by 267%, and foreign shares – by 12%. Last year, exchange traded funds or ETFs gained similar popularity, where the total volume of transactions increased by 281%. The total amount of new investments in securities last year reached 51 million euros.

In monetary terms, Latvians have invested the most in Swedbank Robur funds – 19 million euros. This is followed by investments in foreign and Baltic stock exchanges, where 16 and 7 million euros were invested last year, respectively. In turn, 9 million euros have been invested in exchange traded funds or ETFs.

As explained by Swedbank Investment Expert Rolands Zauls: “Last year marked a significant leap in the field of investment in Latvia. We see that more and more people are choosing to invest their free financial resources rather than keep them in an account that has been facilitated by more accessible investment solutions. For example, Robur funds offer to invest in funds from different regions, sectors and themes, even from one euro. Due to their advantage and wide offer, Robur funds are popular not only among new but also existing investors who are looking for a reliable solution to invest their savings or to create savings through the financial market. In turn, transactions with shares traded on the Baltic stock exchange became much more in demand last year due to the entry of local companies such as Virši, Delfin Group, Enefit Green, Hepsor and others into the Baltic market. ”

It should be mentioned that Swedbank offers to trade in shares listed on the Baltic Stock Exchange free of charge, which has also attracted the attention of many young investors who have understood how the securities market works and see opportunities to make additional profits.

Top investment choices

When evaluating the most popular investment goals of the population, Swedbank Robur Access Edge Global investment fund, which invests in companies of various industries all over the world, is by far the number one choice. This is followed by Swedbank’s Robur Fastighet (Real Estate) investment fund, which invests in real estate-related companies around the world. Swedbank Robur Technology Fund ranks third, investing in technology companies around the world, mainly in the IT sector.

Of the balanced funds actively managed by the professional team of Swedbank Robur and correspondingly more suitable for investors who have just started their first steps in the investment world, the most popular last year was Swedbank Savings fund 60, which invests on average about 60% in equity funds and about 40% in fixed assets. income securities funds, as well as Swedbank Savings fund 100, which invests up to 100% in equity funds.

In transactions with shares on the Baltic Exchange, AS Olainfarm ranked first in terms of turnover last year, but this was a natural result, taking into account the delisting of the company and, accordingly, the mandatory repurchase of its shares. This was followed by Enefit Green with a very successful initial public offering or IPO. The domestic company Virši is in third place, while Delfin Group and Ignitis are in fourth and fifth place, respectively.

“Overall, the financial markets have been successful last year, thanks in large part to economic stimulus programs, low interest rates and government bond purchases. The new year promises to be challenging for financial markets in geopolitical developments, central bank monetary policy and other factors. But what new and emerging investors should always remember is that when money is kept in an account, its value will only decrease, while financial markets provide an opportunity to earn or maintain its current value. It is therefore worth remembering that the financial markets value patients, or those investors who do not panic about every stock price or market fluctuation, but invest consistently and periodically in the financial markets to achieve their long-term financial goals. ” notes Rolands Zauls.

Swedbank

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