Bulgarians allocate a significant portion of their savings to deposits, with 73% of their assets held in this form. In contrast, citizens across the European Union invest 36% of their assets in financial markets. Bulgarians are more conservative in their investment choices, with only 5% of their assets directed toward financial markets, while 20% are invested in pension and insurance products. This is in comparison to the EU, where 31% of savings are in deposits and 27% are invested in pension and insurance products.
These figures highlight a considerable opportunity for growth in Bulgaria’s financial market, according to Julian Vlahov, Director of Products and Services at UniCredit Bulbank. He emphasized the significant potential for change, noting that even small, regular investments could have a transformative impact.
UniCredit Bulbank CEO Tsvetanka Mincheva observed that young Bulgarians are becoming increasingly knowledgeable about investment strategies. She stressed that creating an investment plan was often the best way to start investing. While risky instruments like stocks have been a preferred choice, long-term investment in funds has been proven to mitigate market volatility, making it a more balanced option.
In the past year, over 15,000 clients of UniCredit Bulbank have invested more than 180 million leva through the onemarkets Fund investment platform. This platform grants Bulgarians access to a variety of asset management funds, including those from major global firms like Amundi, Allianz Global Investors, BlackRock and J.P. Morgan.
The bank’s statistics shows that half of the onemarkets Fund investors earn between 1,000 and 3,500 leva per month, with 7% already participating in an investment plan. Most clients (40%) are between 40 and 55 years old, with an average income of 2,650 leva. The typical investment amount is 84 leva per month, and investors are evenly distributed between smaller towns and larger cities. The average investment horizon is just over five years, and investors typically have about 2.5 plans each. Interestingly, women slightly outnumber men in the investor base, with a gender ratio of 51:49. Investment goals vary, with people saving for education, real estate, major purchases and retirement. (Novinite)