As a result of repeated reduction of key interest rate in 2019–2020, the return on ruble deposits has decreased to 4.5–5% per annum, which, in turn, attracts the attention of retail clients to investment instruments.
“There is a synergistic effect of such factors as development of the institution of investment life insurance with tax incentives, and more active work to attract large and new investment companies that are part of banking groups to the stock market, and, of course, decrease in the attractiveness of bank deposits,” says Vadim Proshkinas, the General Director of Asset Management Company Finam Management.
Despite the strongest volatility growth in the financial markets, the assets began to grow in the first quarter of 2020 and continued the growth in all key areas, including a significant increase in retail clients' investments in open-end mutual funds and trust management strategies, says Konstantin Fedulinsky, the CEO of Otkritie. According to the results of the 1st HY, the funds of private investors in the open-ended mutual fund of Otkritie Management Company have increased by 22% since the beginning of the year and exceeded 9 billion rubles. The growth of individual trust management of funds was 12% (the amount of funds under management exceeded 51.4 billion rubles).
According to Expert RA agency estimates, the market may grow by 11% to 2019 and reach 9 trillion rubles by the end of 2020, provided that there is not stock market crash, which would lead to a significant decrease in the asset value under the management company control.
Photos are from open sources.