The survey adds that it is “also clear from the results that low deposit rates encourage investors to consider longer investment horizons”. With that approach, the survey speculates, long-term savings accounts and pension savings accounts present attractive solutions because both product types come with tax benefits.
“Investment funds are by far the most popular savings forms amongst private persons, but the outcome of K&H’s investment survey indicates that people keep their financial reserves in several investment vehicles at the same time. These are primarily the following: bank deposits, shares, foreign currencies, government bonds and life insurance combined with investments. This is a very effective risk-spreading strategy” said Zsuzsanna Zobor, CEO of K&H Fund Management Company.
“Hungarians are generally cautious in investment decisions, preferring safety and capital protection. But the potential yield and easy access are also deemed important. As these needs are best satisfied by investment funds, we expect that the market of funds will continue to expand this year. We have always recommended that our clients should spread their savings across several underlying instruments, and investors increasingly prefer that method as well; mixed funds, which involve a portfolio in themselves, present a good solution in that regard,” explained Zsuzsanna Zobor.
According to the findings of the survey, investors have become wiser not only in terms of risk spreading but also in connection with the investment horizons. The survey argues that low deposit rates clearly encourage investors to move from short-term deposits towards longer investment periods. “Those who consider tenors of 3-5 years can choose a long-term investment account and/or a pension savings account, both of which come with tax benefits this year”, the survey further adds.
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