“Thirst” for higher profit prompts Albanians to cast 550 million euros in investment funds
Albanians have trusted over 550 million euros to investment funds.
According to data from the Financial Supervisory Authority, at the end of September 2017, the total net assets of these funds amounted to ALL 73.6 billion.
Since the beginning of the year, the value of assets has increased by 12.5%.
There are over 61 million euros that Albanians have deposited in investment funds over the first nine months of last year.
Expanding investment funds shows an increasing trend of individuals towards alternative financial instruments.
This is also dictated by an era of extremely low interest rates in the economy.
Many individuals have sought more profitable alternatives and this has led to the expansion of the portfolio of these funds.
This is reflected in a stagnation in the annual growth of deposits, which at the end of November 2017 had almost the same value as November 2016.
There are three licensed investment funds operating in the Albanian market, of which two in the national currency Lek and one in Euro.
Funds in Lek prevail with 80% of total assets, but the euro-denominated fund, Raiffeisen Prestige, has reached significant proportions, with around 111 million net assets.
Because of the investment portfolio structure, the euro fund currently guarantees significantly higher returns for investors, compared to funds in ALL.
While ALL funds invest almost entirely in Albanian government securities, the euro fund has a more diversified portfolio of investments, resulting in higher profits and higher net asset value per share.
SCAN
*Material i përgatitur nga portali SCAN. Ripublikimi mund të bëhet vetëm kundrejt citimit të autorësisë dhe burimit origjinal.