Financial experts note a noticeable turn in the investment preferences of Russians

VTB board member Vitaly Sergeychuk noted a noticeable turn in the investment preferences of Russians: after a period of high deposit rates, savings are actively flowing into other instruments – from money market funds to bonds. He stated this at the 16th VTB Investment Forum “RUSSIA CALLING!”

In recent months, it is clearly visible that investors are looking for ways to maintain and increase the profitability they are accustomed to in 2023-2024.

“Income from the growth of deposits is actively flowing into other instruments. We are seeing movement into money market funds, into bond funds, and also a strong surge of interest in placements in the bond market. Funds are leaving deposits for more profitable instruments—the movement is obvious.”

The growing interest of retail investors in the market coincided with the revival of the corporate sector. Companies are preparing for a wave of public offerings.

“We continue to see interest in IPOs from a wide range of issuers, including both new economy companies and issuers from traditional industries. Currently, more than 10 issuers are preparing for placement and are waiting for favorable market conditions. The demand from companies to enter the stock market is quite high,” Sergeychuk said.

He also noted that at the moment Russian institutional and retail investors remain the main stable source of demand for IPO transactions. VTB views the return of foreign capital as an addition to growing local investor demand, and not a replacement for it.

“If we talk about foreign investors, if the geopolitical situation improves, the first wave of demand, in our opinion, may come from investors from friendly regions that already have close economic ties with Russia. First of all, this is the Middle East, where sovereign funds and large private investors are traditionally interested in dividend, raw materials and infrastructure stories,” Sergeychuk noted.

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