According to the consensus forecast of Forbes, in 2022 such an investment could yield 18% per annum. For comparison: real estate, according to analysts, will bring 8% per annum, IGLBs – 12%.
In Ukraine, it is quite possible to get 50% per annum, according to Artem Afyan, managing partner of the Juscutum law firm. “You can make $ 50,000 out of $ 20,000, but the question is, what to do with that money next?” He says. Finding a stable source of passive income that would protect savings from inflation is a global challenge. The economic consequences of the pandemic only exacerbated it, adding work to the global wealth management industry.
2,500 wealth managers from different countries interviewed by EY consultants say the most popular customer requests in 2021 were to protect against inflation and ensure “adequate profitability”. In 2019, tax optimization ranked first in a similar survey.
Potential clients of investment advisers have become richer during the corona crisis, especially in developed countries. According to Credit Suisse, the average wealth of an adult earthling in 2020 reached a record high – $ 79,900.
In Ukraine, it is more difficult to solve the tasks that wealthy clients set for their executives abroad. The main problems are limited choice of tools and low financial literacy even among people with relatively high levels of wealth.
Ukrainians with incomes of UAH 30,000–50,000 per month are less well versed in finance and investment than their less well-off citizens, who earn UAH 20,000–30,000, according to a September 2021 USAID and Info Sapience study. Those who earn from UAH 50,000 per month understand the finances best.
Yuriy Antonyuk, Vice President of IT т Outsourcer EPAM, who manages the company’s business in Central and Eastern Europe, does not use the services of professional advisors. He shares the opinion of Smilyansky and Afyan and prefers to invest in tools he understands. “You need to invest in what you understand,” Antonyuk echoes Warren Buffett’s mantra.
He invests in stock assets, preferring indices. “It’s a reliable approach,” says Antonyuk. “With less profitability, but also less risk.” In December, EPAM was included in the S&P 500 index of the largest US companies by capitalization.
Antonyuk advises people with little experience in investing to invest in self-education. “It will definitely pay dividends in the future,” he said.
Afyan of Juscutum is active in cryptocurrencies and real estate, with his company accompanying a recent deal with Treeum to buy a Wotan securities application.