According to RBC statistics, an influx of new investors with small amounts of investments has been recorded in the Russian stock market. What is the reason, is it good or bad – we understand in our new article.
Note: any investment activity on the exchange is associated with a certain risk, this must be taken into account. To perform operations on the exchange, you need a brokerage account, you can open it online. You can study trading software and practice performing operations using test access with virtual money.
RBC journalists received statistics from several brokerage companies. The numbers indicate an increase in the number of investors with a small amount in the account (50-100 thousand rubles).
At the same time, in the previous period, the growth in the number of investors with accounts up to 100 thousand rubles was practically absent. This is an important trend in the modern financial market of Russia.
Such newcomers begin their activities on the stock exchange with small amounts, do not increase their deposits for a long time and prefer a long-term investment strategy (buy & hold).
What is the reason for the growth in the number of investors with small amounts
According to analysts, the increased activity of novice investors and those who do not have significant amounts is due to the fact that the model of accumulation of funds using bank deposits ceased to work due to lower rates.
In March 2019, the average maximum deposit rate at the ten largest banks in Russia was 7.72%. After that, the average rate began to decline and by November reached a historic low of 6.03% per annum.
The standard behavior pattern of such people is an attempt to invest a small amount on the exchange, while maintaining a deposit in the bank. This scheme is becoming popular, including due to the increase in the number of investment instruments with low risk. These include:
IIS accounts (they can be used for strategies with investments in government and corporate bonds);
structural products are various financial instruments collected in a single portfolio. Analysts of a brokerage company select them in a certain proportion to ensure either minimal or near-zero risk when investing on a stock exchange;
model portfolios is an investment tool that consists of several securities selected on certain grounds (for example, bonds or shares of one sector of the economy)
ETFs are essentially stock exchange investment funds, which are a portfolio of stocks or other assets that completely repeat the composition of the target index.
With the advent of investors with few resources, the average brokerage account has decreased. According to the Central Bank, in the second quarter of 2019, the average IIA for brokerage services decreased from 117 thousand to 104 thousand rubles, in trust – from 373 thousand to 334 thousand rubles.
Interviewed by financial experts, journalists predict a further increase in the number of investors with small savings.
The situation with bank deposit rates will not seriously change in the near future, and the spread of low-risk investment tools (and test access with virtual money without the risk of real losses) makes exchange experiments more attractive for an increasing number of people.
Useful links on the topic of investment and stock trading:
- Open a brokerage account online
- Test account with virtual money
- Software for trading on the exchange: trading terminal, mobile applications
- Structural Products
- Model Portfolios
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