Russian population will soon begin converting savings to stock market: Shohin
From a TASS interview ahead of the St. Petersburg International Economic Forum, Alexander Shohin, head of the Russian Union of Industrialists and Entrepreneurs (RSPP), made some interesting remarks.
He believes that a decrease in interest rates alongside inflation, say, to around 13-15%, would almost immediately resurrect tools for the stock market.
"Currently, they're not functioning because it's far more appealing for both individuals and corporations to keep their funds on deposits rather than buying shares or bonds, and so forth," he explained. "The stock market is currently not delivering the returns achievable through the banking system."
However, according to Shohin, we should already be gearing up all stock market tools for when "the population will, within a year or two, be searching for a safe and profitable place to invest."
Apparently, the RSPP proposes preparing stock market tools that can be utilized by private individuals, and they're currently collaborating with the Cabinet, lawmakers, and the president's administration on this issue.
Shohin assures there should be no compulsory conversion of savings into shares or corporate bonds.
"However, we need to offer attractive instruments. This also serves as a fantastic method to find resources for future investments, within a year or two," the head of the RSPP summarized.
As previously reported by "Moonkler," Prime Minister Mikhail Mishustin stated that Russia needs to enhance ways and conditions for investment growth.
On a related note, common methods to appeal to individual investors might include:- Increasing financial literacy through education programs and accessible resources.- Strengthening investor protection by implementing regulations and safeguards.- Introducing straightforward financial instruments, like ETFs or mutual funds.- Fostering transparency in the stock market by disclosing information about companies and their investments.- Providing incentives, such as tax benefits or reduced transaction fees, to encourage individual investment.
- Alexander Shohin, advocating for an improved investment environment, suggests increasing financial literacy among the population to more effectively utilize stock market tools, since Russia aims to foster conditions for investment growth.
- In his efforts to attract individual investors, Shohin also proposes the introduction of user-friendly financial instruments, like ETFs or mutual funds, as part of the RSPP's strategy to find resources for future investments within a year or two.
