In the second quarter of 2023, the number of individual shareholders in mutual funds (UIF) across Russia rose by 420,000, surpassing 9 million total. This trend is highlighted in a report from the Central Bank of Russia. The regulator notes that retail demand for mutual funds grew during the quarter, reflecting a sustained interest from the public in managed investment options.
Net inflows into mutual funds in Q2 climbed by about one third compared with the first quarter, reaching 242.2 billion rubles. A large portion of this money—194.3 billion rubles, or 80 percent—flowed into closed mutual funds, signaling a preference among investors for certain structures that can offer distinct liquidity terms and risk profiles.
The Central Bank points to a broadening appeal of mutual funds among individuals. The rising popularity is linked to recent periods of higher returns offered by funds and to the widening range of investment products available to retail investors. As more options become accessible, households are exploring funds as a pathway to participate in markets with diversified risk and potential for growth.
On performance, open mutual funds reported a weighted average return of 10.6 percent annually in the second quarter, while closed mutual funds achieved an annual return of 23.9 percent. These figures stood well above the inflation rate, underscoring the real return potential that mutual funds presented even in times of economic uncertainty. The data reflect a situation where risk-adjusted opportunities are attracting capital from a growing base of individual investors.
Despite a climate of economic uncertainty, mutual funds continued to draw new funds from the public, maintaining a strong velocity of capital inflows. At the same time, there was a noticeable rise in the number of people participating in the stock market, indicating a broadening of retail investor engagement beyond mutual funds alone.
Analysts in early August examined which instruments and strategies to monitor following registrations on the Moscow Stock Exchange. The focus was on understanding how newly registered players might incorporate different asset classes into their portfolios and which product types could offer favorable risk-return characteristics under changing market conditions.
Additional data illuminate how many Russians were already financially engaged in stock market activity before the latest wave of entrants. The trend suggests a growing culture of investment participation, with more individuals looking beyond traditional savings to seek long-term wealth-building opportunities through a mix of mutual funds and direct equity investments.