Unit investment funds continue to see inflow of clients in Q3
In Q3 2021, the number of retail investors in unit investment funds (UIFs) exceeded 5.7 million which is over one million more than in the past three months.
The growth in the number of investors is driven by new clients wishing to invest small amounts. Specifically, the average amount of households’ investments was down 7% to 41,000 rubles over quarter.
The net inflow of funds into UIFs declined as compared to Q2. This was largely conditioned on an outflow of investments from interval unit investment funds (IUIFs) which proved to be an adjustment after fast growth in the previous quarter.
Unit holders continued to divest from open-end UIFs and exchange-traded UIFs focused on Russian bonds. Conservative investors were able to reinvest into bank deposits whose rates began to go up. At the same time, funds investing into Russian corporate stocks showed positive trends. This was mainly supported by growing stock market along with slackening bond market.
Closed-end unit investment funds (CUIFs) ensured the major inflow of funds, as usual. They are gaining popularity among wealthy households as the product line is expanding and the entry threshold is getting lower.