Ruble Deposits Lead Among Popular Assets in Year-End Conservative Portfolios
A recent analysis shows that ruble-denominated deposits delivered the strongest returns for traditional conservative portfolios at the close of the previous year. The findings are summarized from FinExpertiza research, as cited by Izvestia.
According to the report, placing 100 thousand rubles into a bank deposit at the start of the year could yield about 7.7 thousand rubles in interest by year-end. In comparison, investing the same amount in corporate bonds would produce roughly 7.2 thousand rubles of income, while federal loan bonds, known as OFZ, would bring in around 3.2 thousand rubles of profit.
The study also revealed that several other widely used investment options posted negative results by year-end. For instance, an investor who bought Russian shares would see losses approaching 39.2 percent of the initial capital. The same tendency applied to many foreign securities. When exchange rate fluctuations are taken into account, a 100 thousand ruble investment in foreign assets could realize a loss of about 23.4 thousand rubles due to currency movements.
Market experts suggested that the deposit option might not remain as attractive in the coming year. Still, the debt market was highlighted as a viable alternative for those seeking stability and predictable income. Some investors are considering a diversified approach that includes shares in a select group of banks and retail companies, particularly as stock prices in those sectors show signs of decline and potential rebound opportunities.
On January 8, economist Alexander Baranov noted that keeping savings in rubles could be prudent in 2023. He cautioned against purchasing currencies of politically tense or sanction-prone countries, given the risk of depreciation and subsequent sanctions that could erode currency value.
In summary, while equities and foreign instruments may carry higher volatility and potential for losses, ruble deposits and domestic debt instruments offer a measure of security in a uncertain market environment. Investors are advised to evaluate tolerance for risk, time horizon, and the role of the ruble in their overall asset mix before making decisions. The evolving macroeconomic backdrop and regulatory landscape will continue to shape preferred strategies for savers and investors alike.