How to start investing in Ukraine in 2023
In this article, we tell you how to properly invest in our country this year. You will learn how to start investing and what investment options are considered the most reliable today. We will also share information on what to pay attention to if your goal is to invest profitably and make guaranteed money.
How to invest in Ukraine
As part of the martial law and currency control regime, the Ukrainian investor is very limited in the choice of assets available to him at the moment. Basically, the list of available investments consists of those assets that are tied to our country.
In 2023, it is almost impossible to find shares of foreign issuers in Ukraine, and bonds of foreign issuers are traded at a premium that makes sense to consider these bonds as an investment instrument. But do not despair, even in such a situation, the market offers the investor several options, among which everyone can choose the most favorable one for himself.
Variants of investments in Ukraine
If you are a novice investor and do not know how to start investing, we have prepared for you a selection of the most relevant investment options in 2023. Let's share an expert opinion and understand each idea in more detail.
Investing in a deposit
The most popular investment method is to deposit money in a bank. The method is simple, but at the same time extremely unprofitable. Not only are the deposit rates low, but the income received from the deposit is subject to personal income tax.
In addition to simplicity, another advantage of this method is flexibility in the form of choosing a specific term of the deposit.
Important: when making a deposit, carefully study the contract.
In some cases, the bank has a limit on the maximum amount on which interest is accrued. In this case, for example, if the bank has a maximum amount for charging interest of 1 million hryvnias, and the depositor deposits 2 million hryvnias, then interest will be accrued only on one million hryvnias, and the second million will not earn money.
Investing in real estate
How to invest in real estate and should it be done now? From the market point of view, investing in real estate makes sense, because according to analytical data, the real estate market is undervalued. And he was like that until the moment when rockets and shrapnel started flying into the property. But you need to understand that in this case you get into an investment with a payback period of 10+ years. This is provided that you buy an apartment in order to rent it out, because the approximate term for which the rent will cover the investment in the purchase and repair is 10 years.
In this case, you still have an apartment that you can sell. But even if the real estate market preliminarily expects an upward trend, there are no guarantees that in 10 years the price of an apartment will grow faster than inflation. And even more so, there is no guarantee that the real estate market will not collapse in the next ten years.
Investing in gold
We share an expert opinion on how to start investing in Ukraine in the popular precious metal — gold. Interest in gold is inherent in both Ukrainian and foreign financial markets. The main theoretical rationale for buying gold is protection against inflation and macroeconomic downturns.
If you look at historical data, gold really performs well during economic downturns. But during other stages of the economic cycle, gold looks quite sad.
It is also important to understand that it is precisely when investing in gold that the investor buys. Yes, Ukraine has a gold ETF — an exchange-traded fund that tracks the movement of metal prices. But it is necessary to realize that when investing in this fund, the investor is exposed not only to the risk of gold, but also to the risk of this fund. That is, the investor will not be able to just come and take the gold that belongs to him.
Investing in government bonds
We tell you how to start investing in bonds and why it is profitable in the current reality . The most basic investment option in 2023 is investing in OVGZ — bonds of the domestic government loan. Investing in bonds is a little more difficult than opening a deposit, but it gives a higher yield due to the fact that one of the instruments in which the bank invests deposits are OVGZ. That is, when buying OVHZ, the investor bypasses the intermediary in the form of a bank.
In addition, OVHZ are considered one of the safest exchange instruments. Depending on the investor's risk appetite, Ukraine offers a wide selection of bonds by maturity, currency, and issuer, as is the case in our country.
Read also: What are military bonds and how do they work
FC Daliz-Finance LLC has the opportunity to purchase military bonds on the secondary market, and has experience in purchasing military bonds through primary dealers. In the first months of the war, our clients bought military bonds worth more than 500 million hryvnias. Join their number by submitting an application on our website.
Frequently asked questions: how to start investing
What is needed to start investing
To start investing, you need to adhere to several main rules:
- calculate what part of free money you can invest;
- determine the asset and investment goal;
- check information about the selected project;
- assess potential risks;
- find a reliable assistant (broker, intermediary, trusted person).
What are the most profitable investments
Investments in securities (military bonds, shares), gold, real estate are considered the most profitable, but only if the assets are managed by a professional investor.