Kazakhstan sees increase in number of open trading accounts

Kazakhstan Materials 19 October 2021 17:19 (UTC +04:00)
Kazakhstan sees increase in number of open trading accounts

BAKU, Azerbaijan, Oct. 19

By Farida Nuri - Trend:

The number of open trading accounts in Kazakhstan has increased by 52 percent since the beginning of the year, Trend reports referring to Kazinform.

According to the information, the list of investment instruments for Kazakhs is increasing from year to year. If in the 2000s the population of the country invested mainly in deposits, now the opportunities to invest and increase their capital have significantly expanded.

In addition to STB deposits (second-tier banks), investment products are offered by insurance companies, as well as brokerage companies and asset management companies that operate in the securities market.

In response, Kazakhstan has seen a surge in public interest in the securities market, with 2021 breaking records in this regard. As of October 1, there were already 196,600 personal accounts opened by individuals in the Central Securities Depository. Since the beginning of the year, their number has grown by 52.1 percent, or 67,400. That is, almost 2.2 percent of the employed population of the country is ready or is already participating in operations on the securities market.

It is reported that one of the popular instruments in this segment for individuals is mutual investment funds (MIF). They represent one of the forms of collective investment. The funds of the clients are transferred to the trust management of the management company. When choosing a management company, it is necessary to be careful - today there are many companies in Kazakhstan that do not have a license from the financial regulator, or even are banal financial pyramids.

On October 7 this year, the Agency for Regulation and Development of the Financial Market published a list of organizations that have signs of illegal activity. The list includes 121 entities, including 56 organizations with signs of a financial pyramid and 65 illegal investment intermediaries (false brokers).

By September 1 of this year, the assets of open and interval mutual investment funds of Kazakhstan increased by 38.9 percent since the beginning of the year and amounted to 124.9 billion tenge ($29 million).