This is followed by investments in gold, which is considered the best for less than a third (28%) of the population, and investments in the third pillar of pensions (16%), which outperformed life insurance investments this year (18%) thought it was the best investment last year, compared to 13 this year). %). This is probably due to changes in legislation, which currently assume that the minimum contract duration for receiving the person's income tax should be 10 years (instead of the previous five years).
In general, the discipline of stocks in Latvia improves every year and now 40% do this as a normal habit. Statistics on household deposits also show that the people of Latvia have more resources to gather for future needs. Their total volume in two years has increased by one billion euros – from 5.8 billion in February 2017 to 6.9 billion in February 2019.
"To get to know the perception of the Latvian population of the safest and most valuable forms of investment, we must conclude that real estate – housing and land – has been a constant first choice for several years." Provisions for the third level of pension and accumulative insurance are also recognized. In response to the demand for investment experience, people mentioned most bank savings accounts (38%) and third-level pensions (29%), the popularity of which has increased by nine percentage points compared to the data from 2015. As the amount of free funds increases, the number of people using one of the types of investments is increasing year after year – it was already 76% in 2019. So the understanding of the role of investments is gradually becoming stronger and more and more people are creating a financial reserve and accumulating for a certain purpose as well as a Although the difference between the vision of preferred investments and real action, usually through savings accounts, third-pillar pensions or savings insurance, can be explained by the availability of investment types. Namely, to save on these solutions, as opposed to real estate investment, there is no need for large initial contributions and they are easy to accommodate from regular income, such as wages, "says Kristaps Kopštāls, Swedbank Head of Insurance and Investment.
Direct investment in securities – shares (12%), investment funds (7%) or bonds (3%) – is rarely seen as the best investment by the population. Instead, preference is given to ready-made solutions where the investment manager performs the right risk sharing and invests instead of the clients. In the past year, however, direct investments in company shares have seen a significant increase (an increase of four percentage points in 2017). This can also be explained by changes in legislation that, for citizens wishing to choose certain securities themselves, allow securities transactions to use an investment account, thereby facilitating and simplifying the profit declaration and calculation of the tax due.
At present, security for invested funds (32%) and good profit opportunities (32%) seem just as important for the Latvian population. By choosing the type of saving and investing, it is important for citizens that they are simple and easy to understand (44%), easy to use and transparent (37%), as well as customized (34%).
If you are considering investing money right now, you usually want to do so within one to three years (22%), followed by investments for up to five years (17%) and longer (16%). In turn, 14% of the population would choose to invest for a maximum of one year. It is remarkable that people with relatively higher incomes are more inclined to invest in the longer term, so that more investments and possibly greater profit opportunities become available.