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I have noticed that shortly before the new year this question became especially relevant to many people who would like to improve their financial situation, especially in view of current tough economic times. So, I decided to share my recommendations.

There are three main areas of investment in Ukraine – real estate, deposits and government bonds.

Everything is clear about real estate: this market always holds up well, given the demand for rental housing. This is really the most profitable investment in the Ukrainian realities, since it has always been important for Ukrainians to have their own housing. In addition, we trust those assets that we can, roughly speaking, touch. This is such a nuance of our mentality.

The situation with deposits is more complicated. Our citizens still do not trust the banking system, society has suffered greatly from the bank collapse, having lost significant invested deposits. But the volume of deposits is actually growing, despite the fact that interest income is subject to taxation.

The third option is government issued bonds. Recently, the government issued bonds market for individuals has slightly revived. If the Government set even more attractive interest rates, in particular on government issued bonds in foreign currency, there would be a growing interest in them. Because rates for foreign investors are twice as high as for domestic ones. If we attract from abroad at 6-7% per annum, then we place inside the country at 3% per annum. For an investor who has USD 50-100 thousand dollars, such investments will be unjustified. I still do not understand why the authorities do not encourage its domestic investors.

You can naturally think of investing in various startups. If you find a really promising project, it will bring significant income in the future. However, for example, I would be interested in buying shares of developed companies that already successfully operate in Ukraine – Rozetka, Nova Poshta, etc. But I can’t do that because we just do not have a capital market. This is at a time when Ukrainians can easily buy shares of the American Amazon, in their own country one can only dream of such a thing. Therefore, we have a narrow circle for investments. Let us hope that next year we will see significant progress in this area.

Founder and Chairperson of the Growford Institute Vitalii Lomakovych.