Ukrainians are most often deterred from investing by a lack of funds, but not only that..
11 November 2024 13:28
Cryptocurrencies, real estate, and government bonds are the three key areas where Ukrainians most often invest during the war. This was stated by Kyrylo Yezhov, Business Development Director at Kantar Ukraine, a research company, during the conference “Living on Interest,” the Ministry of Finance reports "Komersant Ukrainian".
The online survey involved 1,000 respondents aged 18 to 55 living in cities with a population of more than 20,000 people.
Where and why Ukrainians invested
According to Kyrylo Yezhov, the top three areas of investment among Ukrainians are as follows:
– cryptocurrencies and NFTs – 16%,
– real estate in Ukraine – 7%,
– Government bonds, corporate bonds – 5% (10% among Kyiv residents).
Investing in cryptocurrencies
Investments in cryptocurrencies have gained popularity as this asset class offers unique opportunities and prospects that differ from traditional investments. First of all, we are talking about
– high profit potential,
– portfolio diversification,
– technological innovations and blockchain,
– protection against inflation and devaluation,
– accessibility and global market.
Investing in real estate
This investment area attracts many people because it provides a stable income and is considered a relatively safe way to preserve capital. Thus, the motives for investing include stable income and passive profit, a physical asset and a lower risk of loss, and independence from the labor market.
Buying government bonds
Investments in government bonds have become popular in Ukraine since the start of the full-scale invasion, as they have the same yield as traditional deposits, but help support the country’s economy. Other advantages include high liquidity, flexibility in terms and conditions, simplicity, and accessibility.
What experience shows
Those with investment experience are also the most likely to invest in cryptocurrencies, real estate, and government bonds.
At the same time, 65 percent of those who have investments say they invest in Ukraine, while 13 percent of Ukrainians hold investments both in Ukraine and abroad. 20% of respondents said they have investments abroad.
Do Ukrainians have a willingness to invest
22% of respondents said they were ready to invest now. At the same time, 49% said they were not ready for any investment at all. Most explain this by lack of funds for investment and lack of trust. But there are also many who do not know where to start.
By the way, more than a year ago, the Ministry of Finance, together with its partners – Tvoe Kolo, IPlan, UkrInvestClub, HUGS’FUND – already found out what investment strategy Ukrainians choose during the war. Nearly 500 respondents were interviewed anonymously in May 2023.
As it turned out, at the time of the survey, the majority had already tried such popular instruments as bank deposits (78.5%) and hryvnia government bonds (about 52%). Shares and cryptocurrencies were purchased in almost equal proportions by about 42% of respondents. Slightly more than 36% have already invested in real estate, and 16% in agricultural land. About 10% tried their luck with mutual funds and precious metals.
